Here's your hot stock tip for 2024. Hey, it's Jon from Financial MD, welcome to today's Didactic Minute.
Did you know that more often than not, the stock market, namely, the S&P 500, goes up in election years? So if you're taking a 50/50 shot, greater than 50 percent of the time, the stock market goes up. In fact, the average rate of return for the S&P 500 in election years is between 7 and 8 percent of the S&P.
Now, I'm pretty sure I did this four years ago, but I think it's worth doing again. So if you want to play your odds on that, there you go. Obviously, my advisor disclaimer, there's no guarantee. Past performance is no predictor of future results blah, blah, blah, blah, blah. So, this is not a stock tip or financial advice, but I always thought it was interesting, and so, we'll see if this year becomes another one of those statistics or it could be a fluke. We never know; but I thought that was an interesting fact.
Is that something we want to base it around? Do we time the market? I don't know. It's not something we do with long-term investing typically. For our retirement investing, we're not trying to time the market and get in and out. Stats and history will show on that one that it typically doesn't work out well. Now if you've got a little bit in a side account and you want to do some day trading and you want to play around with that, what does the research say on whether that works out long term? That's probably another video for another time, but maybe play around with it in a little bit of your play money and see how this year goes.
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It's Jon from Financial MD, we'll see you next time.
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