2024 Election: Latest Insights from Schwab Experts
When it comes to the 2024 U.S. election, the noise and uncertainty can feel deafening. In our view, long-term investors should ignore the noise and continue to focus on their goals and financial plans. Presidential elections historically have had very little impact on markets—stocks, for example, are more influenced by corporate earnings, monetary policy, and economic data than the election outcome.
Markets have historically rewarded long-term investors regardless of the presidential party
Source: Schwab Center for Financial Research with data provided by Morningstar, Inc.
The chart above shows the growth of $1 invested in a hypothetical portfolio that tracks the Ibbotson US Large Stock Index on January 1st, 1961. January returns in inauguration years are assumed to be under the party that is being inaugurated. Returns include reinvestment of dividends and interest. The example is hypothetical and provided for illustrative purposes only. It is not intended to represent a specific investment product. Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes please see Schwab.com/IndexDefinitions. Past performance is no guarantee of future results. *YTD as of 6/30/2024
That said, the balance of power in Congress may have a significant effect on issues that matter to investors, such as tax policy, tariffs, the federal debt ceiling, relations with trading partners such as China, and more. To help you stay informed, we've compiled all our election coverage here. We'll keep this page updated, so check back for the latest insights from Schwab experts.
What to watch
What to Watch as the 2024 Election Approaches: See what Michael Townsend, Charles Schwab's managing director for legislative and regulatory affairs, is keeping his eyes on this election cycle, especially how Congressional results could impact the debt limit and taxes.
Party in the USA: Election Facts: Find out what Schwab Chief Investment Strategist Liz Ann Sonders and Senior Investment Strategist Kevin Gordon view as an effective election-year investing strategy after sifting through the data about how the party in power has affected stock market performance.
Schwab Market Update: Check out daily commentary from Schwab's Head Trading & Derivatives Strategist Joe Mazzola for the latest market news each day.
WashingtonWise podcast: Listen to the latest analysis and interviews in Charles Schwab’s government-focused podcast hosted by Michael Townsend. It's Schwab's non-partisan view of how news and policies from Washington impact investors.
Financial Decoder podcast: Join the "How Do You Gauge the Impact of Washington on Your Finances?" episode to hear Mark Riepe, the head of the Schwab Center for Financial Research, and Michael Townsend discuss the cognitive and emotional biases that influence political decision-making and unpack the gap between campaign promises and legislative realities.
October Market Snapshot: See how markets have historically performed during election years in this video from Schwab’s Liz Ann Sonders.
Trading
If you're looking to take advantage of market movements around the election, check out our coverage on trading strategies and the thinkorswim® trading platform.
A Trader's View on Options Volatility & Elections: Learn options strategies to potentially harness market volatility around the election.
Grab Your Coffee: Election Night, thinkorswim, and You: Learn tips for how to use thinkorswim to find the proverbial needle among the hay on election night. This article offers four tips on how to use thinkorswim in your election night trading.
Taxes
2024 Election: A Look at Candidates' Tax Proposals: Learn who actually sets tax law and how tax policy proposals by presidential candidates may affect investors.