Please note ThinkMarkets does not provide CFD services to residents of the US.

Please note ThinkMarkets does not provide CFD services to residents of the US.

Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
Proprietary Trading

Partner with us to build your own prop trading business. Enquire with our account managers today.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Refer a friend

Receive $50 for you and your friend when you convert them into an active trader of ThinkMarkets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

Which markets thrive during presidential election years?

ThinkMarkets ThinkMarkets 06/03/2024
Which markets thrive during presidential election years? Which markets thrive during presidential election years?
Which markets thrive during presidential election years? ThinkMarkets

Presidential election years in the United States aren’t just pivotal political events, they also mark significant periods of change and opportunity in various industry sectors, in both local and global scale. The run-up to elections often brings heightened attention to policies that can reshape industry landscapes and global trade agreements, making it a crucial time for traders to monitor and adjust their strategies. 
 

During election years, the promises, plans, and projects of presidential candidates, along with the broader political climate, can have a heavy influence on investor sentiment and market trends. In this article, we’ll go through the key industries affected by the presidential election years, such as healthcare, energy, defense, and technology. 
 

For traders, it is essential to observe and understand these patterns as an additional layer of security and confidence when making their trades. US presidential election years offer a chance for traders to capitalise on market movements which arise due to this political event. 
 

Historical trends during US political elections 
 

The impact of US presidential elections on various industries can be traced back through several election cycles. US indices following major US companies, such as the SPX500 (S&P500) and US30 (Dow Jones Industrial Average Index), are highly sensitive to election outcomes. 
 

During election years, the healthcare sector frequently becomes a focal point, as candidates' policies on healthcare reform can signal major changes for insurance companies, pharmaceuticals, and hospital corporations. 
 

The 2016 election between Donald Trump and Hillary Clinton saw the healthcare sector fluctuate due to debates over the Affordable Care Act. The energy sector, too, often sees considerable movement. In election years like 2008 (Barack Obama vs John McCain) and 2012 (Barack Obama vs Mitt Romney), policies on renewable energy and fossil fuels heavily influenced energy stocks. Renewable energy companies, green energy ETFs, and commodities such as Natural gas tend to receive more attention during Democratic campaigns, which traditionally focus on sustainability. 
 

It’s important to note these historical trends as patterns repeat. Should 2024 US presidential candidates take on a similar stance, there’s historical data that says that a similar effect may take place. 
 

Political policies and market impact 
 

The policies proposed by presidential candidates can have far-reaching effects on various industries, even outside the US. A candidate's stance on trade agreements and ratifications, for example, can directly impact industries dependent on international trade, such as manufacturing, retail, and agriculture. This was evident in the 2016 elections, where discussions around NAFTA and trade relations with China influenced major market volatility across the world. 
 

US presidential election years often impact consumer goods and retail sectors, primarily through changes in consumer confidence. The public expecting tough times due to a US presidential candidate’s proposed fiscal policies will change their consumer spending patterns. 
 

Technology and defense are also closely tied to presidential policies. Changes in defense spending can directly impact company stocks in the aerospace and defense industry. Similarly, technology companies are sensitive to policies on issues like net neutrality, data privacy, and trade relations, as they can affect operational costs and market access. 
 

Lastly, the overall sentiment on US presidential candidates can heavily impact the forex industry, specifically the USD’s perceived strength against other currencies. A presidential political candidate that appears weak but is touted to win can severely weaken the dollar, causing currency pairs like EUR/USD to appreciate in price. 
 

For more information on how forex is affected, read our article on Foreign policy and forex: how US presidential elections influence global currency markets. 
 

Riding the volatility and market swings with ThinkMarkets 
 

Uncertainty about election outcomes and subsequent policy changes can lead to heavy swings in the markets. 
 

For traders, these election years present a good mix of challenges and opportunities. The key to successfully riding out this volatility and the market swings is a deep understanding of historical market trends, anticipation of policy impacts, and a strategic approach to trading. This is where ThinkMarkets comes into the picture. 
 

At ThinkMarkets, traders gain access to an extensive suite of tools and resources designed to provide insights into market movements and help in making informed trading decisions. Some of the powerful features that ThinkMarkets traders can utilise include Traders’ Gym, our proprietary backtesting tool, Signal Centre, an FCA-regulated trading signal provider, and TrendRisk scanner, our app-exclusive market scanner. 
 

Stay ahead of the curve by signing up with ThinkMarkets today! 
 

portal.thinkmarkets.com 

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

How do the US presidential elections affect t...

By ThinkMarkets

20/05/2024

Key events to watch out for during the 2024 U...

By ThinkMarkets

22/03/2024

Foreign policy and forex: how US presidential...

By ThinkMarkets

06/03/2024

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top