£ 10,000 inverted in the S&P 500 the day before the presidential elections is worth it …

Possibly the biggest event for the S&P 500 Last year was the presidential election of the United States, held in early November. Now we are more than three months after that date, with Donald Trump implementing early policy actions. Investors have already experienced high volatility in the market during this period, with tariff talks and other focus actions. However, if someone had invested £ 10k the day before the elections, this is how things would be seen now.

Details of the performance

The day before the elections, the S&P 500 was quoted at 5,712 points. Now it has 6,129 points. This marks an increase of 7.3% over the period of three and a half months in question. Then, the £ 10,000 were currently worth £ 10,730.

Clearly, the initial conclusion is that the actions have taken the electoral results well. Some people might think that a 7.3% yield is not exactly outstanding. However, it is important to keep in mind that this is the gain after only a few months. Using some ingenious mathematics, the annualized yield would be 27.45%, if the stock market continued to increase at the same rate that has done it from the elections. Of course, there is no guarantee of this, but it helps to put into perspective the size of the movement we have seen since November.

Investors may interest that during the same period of time, the Ftse 100 rises for 7.12%. Part of this can be explained by the general positive feeling that feels investors of shares around the world. However, it also demonstrates that the performance of the S&P 500 is not significantly better than the index actions of other countries.

Election winners

Within the index, there have been some clear winners of the early stage of the elections. For example, Tesla (Nasdaq: Tsla). If an investor had bought the US actions the day before the elections, it would increase a huge 45.8%. During a broader period of time, the action has increased by 82%.

Part of the jump can be explained due to the close ties that Elon Musk has forged with President Trump. Some feel that affiliation could be beneficial for Tesla as a company, and Trump may offer preferential terms or commercial agreements for the electric vehicle manufacturer (EV).

The business has worked well during this period. Since the elections, there have been more news about Robotaxi's approvals, and Musk promised to launch a prototype of the Humanoid Robot optimus this year.

A concern is that greater competition in the EV space could cause the traditional source of income to fall. In fact, 2024 saw the company publish the first annual decrease in EV sales in more than a decade.

I think it is worth considering shares for investors. I have already sustained it for a while and will not be sold soon, since I feel that the rally could continue for some time. In any case, I would seek to buy more if the action saw a dip.

The final result

The S&P 500 has gone well in the months that followed the November elections. Given the superior performance of the selected electoral winners, I think that investors can seek the selection of active actions to try to overcome the index this year.