November has a reputation for being a standout month for the stock market, and the numbers back it up. Over the past 30 years, the S&P 500 has posted gains in 23 Novembers, with a solid median return of 2.8%. But when it is an election year, there is always a little more drama. While pre-election uncertainty can cause some bumps, markets tend to rally once the results are in and stability returns.
This year is no different: we are not only dealing with a closely contested election, but also a key Federal Reserve (Fed) decision on US interest rates. On top of that, November kicks off the “best three months” for stocks—alongside December and January—adding to its seasonal strength.