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Wealth Management Wire
Capitol inauguration Copyright Mario Tama, Getty Images

How The Market Reacts To Presidential Inaugurations

What's in store for the upcoming months? Volatility.

by Bob Creed, Financial Research Associate, The Oxford Club

Predicting what will happen next with the stock market is impossible. But that doesn't mean you shouldn't study the past. History may not predict the future, but it can be useful to look back and see how the market has reacted during certain events.

Presidential inaugurations are a perfect example.

Now that President Trump has been sworn into office, investors are wondering: What's in store for the coming months?

As you can see from this week's chart, we could reasonably expect a few ups and downs over the next few months.

Since Eisenhower's presidential inauguration in 1953, the two-week post-inauguration return of the S&P 500 has averaged 0.80%.

This may seem like a really low average return, but think about it another way. The market has performed positively 77.8% of the time.

Generally speaking, the market reacts in a positive…

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