There’s a saying that with enough prodding, you can make statistics say whatever you want.
We believe this is especially true for the loads of data surrounding presidential elections. It’s possible to use the data to say two different things about the economy, depending on the point you’re trying to make.
For example, one analyst reported that since 1929, the S&P 500 gained an average of 1.58 percent in a president’s first year in office. Another claimed that since 1928, the first year of a new presidential term sees “the markets” rise by an average of 6 percent. Citing different indexes and years can change the story.
[CLICK HERE to read the article, “Why markets tend to fall during a presidential election year,” from CNBC, Jan. 13, 2016.]
According to retirement statistics from the Statistic Brain Research Institute, the average retirement age today is 63 and the average length of retirement is 18 years. The average savings of a 50-year-old is only $42,797, and the average net worth of a 55- to 64-year-old isn’t much better: $45,447.
Daniel Shub, AIF®, RFC®
Wealth Management Advisor & Founder.