Written by: Therese (she/her)
2 min read | Published: July 16, 2024
As college students, you may be starting to understand the wider financial markets in addition to investing in your education. An election year is one factor that has the potential to cause tremors in those markets. With the 2024 elections quickly approaching, it’s critical to comprehend how your investing strategy may be affected by this significant political event.
Election years come with a unique set of dynamics that can influence investor behavior and market performance. Political campaigns often focus on policies that can have direct implications on various sectors of the economy. For instance, a candidate’s stance on education, health care or energy can lead to risky investing as markets try to predict the election outcome.
Historically, the stock market has shown a tendency to perform favorably during election years, particularly in the latter half of a president’s term. This pattern suggests that while the immediate reaction to election results can be unpredictable, the long-term impact on your investments might be positive. Election outcomes can lead to significant policy shifts that affect the investment landscape. For example, changes in student loan policies, grants and tax laws can directly impact college students like you. Keeping an eye on these potential changes can help you make more informed decisions about where to allocate your resources.
It’s easy to get caught up in the emotional rollercoaster of an election year. However, it’s important to stick to a long-term investment strategy rather than trying to time the market around election cycles. While short-term volatility is expected, it can also present opportunities for savvy investors. As a college student, investing during an election year can be challenging. The key is to stay informed, avoid making decisions based solely on the political climate, and focus on your long-term financial goals. Remember, investing is a marathon, not a sprint. The decisions you make today can have a profound impact on your financial future.
While election years can lead to uncertainty in the markets, they also offer a chance to learn and grow as an investor. By understanding the potential impacts and maintaining a level-headed approach, you can navigate the election year with confidence and set yourself up for financial success. Happy investing, and may your financial journey be as enriching as your academic one!
https://www.forbes.com/sites/forbesfinancecouncil/2024/01/16/investing-during-an-election-year-what-you-should-know/?sh=1e61f7746021
https://www.capitalgroup.com/advisor/insights/articles/3-investor-mistakes-election-year.html
https://www.honorsociety.org/articles/navigating-election-year-dynamics-impact-college-campuses
https://privatebank.jpmorgan.com/nam/en/insights/markets-and-investing/ideas-and-insights/election-year-investing-jitters-considerations-that-could-set-you-at-ease
Was this helpful?
Browse Related
CALCULATOR | INVESTING
Compare the best auto financing options. Calculate whether a dealer rebate or a special interest rate offers greater savings on your new car purchase.
Learn More
CALCULATOR | COLLEGE
Plan your student loan journey confidently. Enter loan amount, interest rate, and term to calculate your anticipated monthly student loan payments.
Learn More
CALCULATOR | INVESTING
Secure your financial future wisely. Determine your ideal retirement savings contribution by considering factors like income, age, and goals.
Learn More
Browse by Category
Collegiate Credit Union accounts are held at Michigan State University Federal Credit Union where savings are federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.
If you are using a screen reader or other auxiliary aid and are having problems using this website, please call (844) 201-9519 for assistance.
Copyright © 2024 Reseda Group LLC, used under license.