The July 14, 2020, Investment Strategy Group report, “The Home Stretch,” delved into past elections and the eventual composition of the legislative and executive branches of federal government and how they related to the stock market.
With the election rapidly approaching, equity market activity in the next few months becomes increasingly important.
The 2020 election is complicated significantly by the precedent-setting economic and nationwide health impact of the coronavirus. Nonetheless, despite most economic measures still in extremely depressed conditions, the equity market rallied sharply, as sequential improvement gave rise to hope that the worst of the deterioration had passed. Whether this belief persists could have a major bearing on the stock market’s progress and the election outcome. The four reports of the Conference Board’s Consumer Confidence Index and three employment reports due before Election Day could influence voter sentiment just as they did in previous presidential elections.