Goldman Sachs Predicts Increased S&P 500 Volatility Ahead of Elections

Goldman Sachs expects increased volatility in the S&P 500 as the U.S. midterm elections approach in three months. Analysts led by Ben Snider noted that historical trends indicate rising economic policy uncertainty during election seasons. The S&P 500 has delivered a median return of 0% in the months leading up to elections since 1974 but typically gains 6% in the following three months. For ordinary investors, this trend implies the potential for market fluctuations that can impact equity investments around the elections.