The U.S. stock market is off to a bad start in August, and the recent declines could hurt more than just Americans’ retirement accounts.
With the U.S. presidential election three months away, the trajectory of stocks in the coming weeks could affect the outcome.
That’s according to an analysis by Adam Turnquist, chief technical analyst at LPL Financial.
“While polls, betting odds, and forecasts can provide valuable insights into potential election outcomes, the data can be noisy,” he wrote in a recent note to clients. “To avoid some of that noise and potential biases, keep an eye on how the market performs during the three-month period before Election Day — a period that officially starts on Monday, August 5.”