Close

Sub-Par Performance by Market in Pre-Election Year Drama

by James B. Cloonan

Sub Par Performance By Market In Pre Election Year Drama Splash image

The year 2007 was a below-average year for the general market—and it was exceptionally low for a pre-election year.

The average return for the S&P 500 during the year before an election is 21.7%; for all years, the average is 10.4%. However, this past year the S&P 500 came in below both figures at 5.5% (coincidentally, the Vanguard Total Stock Market Index fund, our benchmark in Figure 1, also returned 5.5% in 2007). The Model Mutual Fund Portfolio did considerably better at 10.2%, but there was wide disparity within the portfolio.

The superior performance of the Model Mutual Fund Portfolio was due to one fund—CGM Focus CGMFX—which was up an astounding 80% in 2007.

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Log in
Already registered with AAII? Login to read the rest of this article.

Register for FREE
to read this article and receive access to future AAII.com articles.
  
James B. Cloonan is founder and chairman of AAII.


Discussion

No comments have been added yet. Add your thoughts to the discussion!

You need to log in as a registered AAII user before commenting.
Create an account

Log In