I suspect most presidents have less influence over stock market performance than the media suggests. And today – probably more so than at any other time in my life – the performance and health of the largest companies comprising the stock market is not a good measure of the overall health of the economy.
But regardless, taking a step back and looking at market movements over multi-year periods can provide a helpful perspective. And so as we near Tuesday’s election, I enjoyed seeing and reflecting on this Axios graphic:
I expect many people would look at this and spin it to support the political narrative they want to be true. And some of those narratives are probably right. But I think the real takeaways are that (1) on average the economy grows, (2) at most points in history the stock market has been at or near its all time high, and (3) there’s a big opportunity cost associated with attempting to time the market.