U.S. Presidential elections are one of the major events impacting Global markets.

Performance of S&P 500 Index (a bellwether index of US Markets), post US elections, throws some interesting points.

  • Data highlights that Presidential elections have generally acted as a catalyst to U.S. Markets.
  • U S markets on an average moved by 6.5% in a six-month period post elections.
  • One year move post-elections is even more impressive with average returns at 15.4%
  • But for the dot com bubble in 2000 and sub-prime crises during 2008, US markets generally rewarded investors post elections.

The following table highlights the absolute dollar returns of S&P 500 index post US elections.

Depreciating Rupee to further enhance returns –

Indian Rupee on an average depreciated by about 2.5% annually against USD over the past 20 years.  Incremental returns to investors in rupee terms may be higher if this phenomenon continues.   

Exposure to U.S markets via international ETFs / Indexed funds may be an opportunity for domestic investors over the next 1 year.  

Disclaimer: We are in the business of distribution of suitable Financial Products to investors describing product specifications, material facts and the associated risk factors. We are acting as a Distributor for MF and other financial products and facilitating transactions. This article is for information purpose only and should not be construed as an investment advice from us. Investors should consult their Investment advisors about the appropriateness and suitability of the products before investing.

Leave a Reply