Apparently, it won’t matter if Trump or Biden wins the U.S. election to small-cap stocks.
According to CNN, following an election, there’s far more focus on domestic issues. In fact, the average return on the Russell 2000 is 15% in the year following an election over the last 30 years. That’s about four percentage points higher than the larger capped stocks.
“Small caps definitely could do better next year. They’ve lagged versus blue chips and usually in a recovery, small caps…lead,” said Todd Lowenstein, managing director and equity strategy executive of The Private Bank at Union Bank, as quoted by CNBC.