The First 100 Days...

Posted by Valley Financial Group and Billy Wolfe Jr.

The first hundred days of a new commander-in-chief's tenure are some of the most intently watched and scrutinized days of his entire presidency. Some Presidents, like the man currently sitting in the Oval Office, choose to take immediate action upon their election, trying to get as much accomplished as they can, while others gradually assimilate themselves to their new position, arranging their cabinet and settling in before trying to make any drastic moves.

However, one thing that remains fairly consistent across the first 100 days of any new presidency is the change in the markets. Since the election of Eisenhower in 1952, the S&P 500 has grown by an average of 1.6% during the first 100 days of a new presidential term. This average growth will most likely be exceeded in Trump' s first one hundred days due to his pro-business agenda. In fact, the market began trending in this direction even before the inception of Trump's first hundred, as the S&P grew more between Trump's election and inauguration then any President since Clinton's second term. Of course, the market is not dependent at all on who the president is and when the torch is passed, but based on the patterns of the markets during the opening of past presidencies we can definitely make an educated guess as to how the market will behave.