Two of the BIGGEST Election Myths with Investing

PLUS: Ten Foundational Stocks Revealed ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     ͏ ‌     Two Election Year Investing Myths Busted Two Election Year Investing Myths Busted Massive 75% Off* Motley Fool Stock Advisor (only $398 $98* for unlimited access for 2 whole years) [Save 75% Now!](~/AAQRxQA~/RgRo3tpXP0TiaHR0cHM6Ly93d3cuZm9vbC5jb20vbW1zL21hcmsvb3Atc2Etc28tNzUtZnNyP2xpZD1tN2p4NmEzbGpxNnMmc291cmNlPWlzYXNvM2VtbDAwMDkxNjUmdT0yMDM4Nzk1MDIyJm1haWxpbmdfaWQ9M2RiMTBiOGUtZmI1ZS00ODc2LWIzYmItODQzMmUyYTQ0NTZmJm1haWxpbmdfbmFtZT1WYXJpYW50IDEmdXRtX2NhbXBhaWduPWV5LW15dGhidXN0JnV0bV9tZWRpdW09ZW1haWwmdXRtX3NvdXJjZT1zb1cDc3BjQgpm91dV_GZK3xilUht0cmlzdHJhbWJhbGR3aW44N0BnbWFpbC5jb21YBAAAAfk~) As election day creeps closer and closer…millions of uncertain Americans are feeling the pressure. Will my preferred candidate ascend to the highest office in the land? What policies could impact me and my family? Will the market tank? How will my retirement portfolio look? Life is simply full of uncertainty right now. And markets hate uncertainty, the old motto goes. HOWEVER… Sitting on the sidelines this year could prove to be an even more costly mistake. We’ve already seen record growth in the market, reaching all-time highs in 2024. And no matter what you think, if you dive deeper into the data, you’ll find that election years actually have historically presened a golden opportunity to invest like a pro and use this uncertainty to your advantage. As one legendary investor famously said, “be greedy when others are fearful.” And right now, our experts think there is an opportunity for individual investors to capitalize while others cower in fear and uncertainty. So let’s debunk the two BIGGEST myths when it comes to investing in an election year…plus what we think could be a foolproof (and potentially very profitable) way to invest. Myth 1: Election years are extremely volatile and result in significant underperformance in the market While we’re not disputing the unpredictability of election years (just look at what’s happened so far this year!)...that uncertainty (usually) doesn’t translate to the market. Consider this: since 1928, equities have seen negative returns four times in election years: 1932 (down 1.4%); 1940 (down 4.7%); 2000 (down 0.8%); and 2008 (down 20.1%). In other words, 83% of election years had positive returns. What’s more, all of those years had extenuating black-swan-like circumstances: 1932 - The Great Depression 1940 - World War II 2000 - The Dot Com Bust 2008 - The Great Recession And even when we stretch out further and consider non-election years, it’s even more encouraging. According to Hartford Funds, S&P 500 Index Average Annual returns in Presidential Election years are 11.57%, versus 10.01% for all years from 1928-2023. Myth 2: If one particular candidate wins the presidency, the market will crash Now that’s not to say that it doesn’t matter who wins the presidency. Of course whichever candidate secures enough votes to become the 47th president of the United States, that candidate will have the opportunity to shape important policies that impact the economy from the top down. However, it really isn’t the end all be all, doomsday scenario some politicians would have investors believe. We have seen varying degrees of market returns from across the political spectrum, so the market is not tied to any particular political party. In fact, if you think back to the most recent 2020, market performance was generally tied to COVID lockdowns and reopenings as opposed to the ideologies of the particular candidates. And the market almost returned 20% that year. And if we go back even further to 2016, we see the drastic dip in market futures when the likelihood of a Donald Trump presidency was on the horizon. But in less than 24 hours after election day, the market rebounded and continued an upward trajectory post-election, ending the year with almost 12% returns. In fact, a presidential election could even have the opportunity to spur additional growth after the ballots have been tallied. That same Hartford Fund study found that stocks gained an average of 2.78% in the first half of an election year, and 9.34% in the second half. OK so now that those two massive myths are dispelled…what does that actually mean for investors? Of course, past performance is no guarantee of future returns, and as we’ve seen over time, the market is anything but predictable. This means investors who chase short term gains, try to predict the market, or invest on a whim based on election year fallacies could be at a severe disadvantage. Here at the Motley Fool, we believe we’ve found a foolproof and simple way to take advantage of election year volatility by buying and holding good stocks for the long run. And that’s led us and hundreds of thousands of like minded investors following our strategy to incredible gains. In fact, our average stock return in our flagship Stock Advisor service is a whopping 745%! And while it might not be sexy…it works. Diversification across a broad class of stocks, buying and holding for the long haul, and keeping a cool head has proven to be the simplest formula to achieve massive success and wealth. But the next question is, exactly which stocks should I buy then to potentially make this dream a reality? For every Netflix, there’s a Blockbuster or Movie Pass. For every Amazon, there’s a Pets.com. And don’t get me started on meme stocks, flash in the pan sensations, or penny stocks! Having a basket of quality companies to choose from and invest in a volatile market environment, and a steadying and guiding voice in your corner could be the leg up you’re looking for…and that’s exactly what Stock Advisor provides. Which is why we’ve hand-selected 10 foundational stocks investors can buy right now and could form the backbone of any investment portfolio. What’s more, every month, you’ll get two additional stock recommendations you can add to your portfolio…all from the team that has beaten the market by over 4x. And that’s not all, members of Stock Advisor also have unlimited access to dozens of valuable stock reports, our video programming through Motley Fool Live, access to analysts and fellow investors on community message boards, and a member’s only podcast. And that’s really just the tip of the iceberg. Members who have followed along with Stock Advisor have seen returns like: - Netflix, recommended in December 2004, up 36,228% - Apple, recommended in June 2008, up 4,064% - Sherwin Williams, recommended in March 2008, up 2,455% - TransDigm, recommended in July 2012, up 1,986% - Shopify, recommended in July 2016, up 2,009% - Tesla, recommended in January 2020, up 688% - CrowdStrike, recommended in June 2020, up 158.12% Now, of course, not all of our stock recommendations have performed this well, but I want to point something out to you before I go… Notice something familiar about the dates? All election years. So don’t let another election year come and go without taking a look at the magic that is Stock Advisor. Join today and get your investments in order before marching to the polls. [Access My 10 Foundational Stocks and Stock Advisor today](~/AAQRxQA~/RgRo3tpXP0TiaHR0cHM6Ly93d3cuZm9vbC5jb20vbW1zL21hcmsvb3Atc2Etc28tNzUtZnNyP2xpZD1pcDFvN2dmNTVjaW4mc291cmNlPWlzYXNvM2VtbDAwMDkxNjUmdT0yMDM4Nzk1MDIyJm1haWxpbmdfaWQ9M2RiMTBiOGUtZmI1ZS00ODc2LWIzYmItODQzMmUyYTQ0NTZmJm1haWxpbmdfbmFtZT1WYXJpYW50IDEmdXRtX2NhbXBhaWduPWV5LW15dGhidXN0JnV0bV9tZWRpdW09ZW1haWwmdXRtX3NvdXJjZT1zb1cDc3BjQgpm91dV_GZK3xilUht0cmlzdHJhbWJhbGR3aW44N0BnbWFpbC5jb21YBAAAAfk~) Here’s to health and wealth in the rest of 2024…and beyond, Sam Barker The Motley Fool   **Returns as of 9/19/24 How did you like this email? 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