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Stock Market Crash — Fall 2020

Markus
5 min readSep 10, 2020

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At the time of writing this, the markets are at all-time-highs… but are we setting up for a Fall edition to the 2020 stock market crash?

If you’ve followed me for any length of time you’ll know I’m not one for making bold market predictions, based on gut feelings.

I take a systematic approach to trading.

So let’s just start by looking at the facts:

1.) This November, we have the Presidential Election. This is and has always been a significant event for the markets.

I’ve found a website (Isabelnet) that has charted what has happened over the last 23 elections.

Has The Stock Market Crashed The Fall Before An Election?

Let’s take a look at what historically happened in the 3 months leading up to the election:

As you can see, 14 out of 23 times the market went up. 9 out of 23 times the market went down.

The moves to the downside haven’t been what I would consider significant, with one exception: The 2008 Financial Crisis

But because that was a unique circumstance, I would consider it a bit of an anomaly.

Other than that, the losses are less than 3.5% and the gains are anywhere between 2.5–8%.

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Markus
Markus

Written by Markus

Markus is a self-made multi-millionaire who was born in Germany. He came to the US in 2002 with $30,000 in his pocket and a dream to become a successful trader.

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