The S&P 500 Has Risen 30.6% in the First 20 Months of Trump's Second Term, Just Ahead of the 28.5% Gain Over the Same Stretch of His First Term. Here's Why That Comparison Matters for Investors Heading Into the Midterms.
It hasn't always been easy, but the Vanguard S&P 500 ETF is pacing ahead of where it was during the first 20 months of President Trump's first term in office.
The S&P 500 experienced a 30.6% increase during the first 20 months of President Donald Trump's second term, surpassing the 28.5% growth it saw in the same period of his first term. This comparison holds significance for investors as they prepare for the upcoming midterms. Historically, midterm election years have proven to be poor for stocks, averaging a meager 4.9% gain.
However, this year, the market is bucking the trend, with potential for another positive year in 2027. A divided government, as seen in the midterm elections, has historically benefited stocks by restraining both parties from implementing disruptive policies. Despite the challenging geopolitical landscape, including the Iran war, high inflation, and the ongoing Ukraine conflict, stocks have shown remarkable resilience.
The Vanguard S&P 500 ETF (VOO) is a suitable choice for investors aiming to replicate the index's performance, offering a low expense ratio of 0.03%.
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