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Behavioral coaching

Navigating the post-election environment

Presidential elections matter, but not so much when it comes to your clients' investments

Get the facts

3 steps to guide your clients this election season

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1. Show them the data

Present historical trends from past elections to show the benefits of staying disciplined in an investment plan.

See the evidence
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2. Remind them of their long-term goals

Emphasize the rewards of maintaining a balanced portfolio and long-term perspective through periods of uncertainty.

Try our Market Hindsight tool
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3. Help put their emotions on the sidelines

Offer an informed perspective to help clients tune out short-term election noise and navigate this season with confidence.

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Guiding clients through the election

Hear from expert Michael DiJoseph, Senior Manager of Vanguard’s Investment Advisory Research Center, on quick tips for addressing client questions about the election.

 

Harnessing historical election data

While presidential elections can be consequential in terms of the direction of public policy, they should not dictate clients’ investment decisions.

 

Historically, the S&P 500 index has seen positive returns following elections

Average S&P 500 index returns following U.S. presidential elections since 1972

A bar chart shows average S&P 500 returns following U.S. presidential elections since 1972. Returns have averaged positive across time horizons for 1 week, 1 month, 3 months, and 12 months post-election.

Past performance is no guarantee of future results. The returns of an index do not represent actual investor returns as one cannot invest directly in an index.

Weekly return based on S&P 500 PR due to historical index limitations.  Monthly and yearly data based on S&P 500 TR.

Vanguard calculations as of October 8, 2024, using data from Morningstar Direct.

Check out the full research

Ways we can help

 

Try our Market Hindsight Tool to help put investing decisions into historical context

Use compelling charts to show clients the power of sticking to their investment plan during election season. The tool simulates market performance for historical market events, including previous elections, on your clients portfolios and demonstrates the value of staying invested.

 

Try it now
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Take these 3 steps to behavioral coaching success

Get our expert framework for guiding clients through moments of uncertainty. Elections are just one example of when your clients most need your help to separate emotions from their investment decisions.

Check out our coaching resources

Insights

Timely perspectives from our expert team for you and your clients.

 

Resources

DOWNLOAD

  • Navigating markets following an election

    Get a glimpse into the intersection of investments and presidential elections, and use past election data to guide clients to stay the course through election season.

  • Why presidential elections shouldn't dictate your investment decisions

    Get the data behind why presidential elections shouldn’t influence long-term financial plans.

  • A historical perspective on investing and politics

    See a comprehensive historical perspective on how elections and investments intersect.

Disclosures and footnotes

  • All investing is subject to risk, including possible loss of principal. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
  • Diversification does not ensure a profit or protect against a loss.