Part 2/11:
Since the founding of the S&P 500, there have been 24 presidential election years. Data shows that in 20 of these years, the stock market experienced positive returns. Moreover, during election years, markets tend to outperform their average annual gains by roughly 10%. This pattern might be partially attributed to incumbent presidents and their administrations' interests in maintaining a healthy economy to boost reelection prospects. Supporters and policymakers often work to stabilize markets and foster economic growth during these periods, creating a relatively predictable environment for investors.