When it comes to investing in stocks, many investors wonder whether it’s better to focus on value or growth stocks, as well as whether to invest in large or small cap companies. Another factor that can influence stock performance is the first year of a presidential term.
Historically, value stocks have tended to outperform growth stocks in the first year of a new presidential term. This is because value stocks are often seen as more stable and less risky during times of uncertainty, such as a new presidency. Large cap companies, which are typically more established and have a larger market capitalization, have also shown better performance in the first year of a new presidential term compared to small cap companies.
While past performance is not indicative of future results, investors may consider these trends when making investment decisions in the first year of a presidential term. It’s important to remember that investing in the stock market always carries risks, and it’s recommended to consult with a financial advisor before making any investment decisions.