Do elections and politics affect stock market performance?

Will the stock market tank if there's a change of government after the 2019 general elections? Many investors today are scared about the outcome of Lok Sabha election next year and how it will impact their portfolios. There is a lot of noise and confusion. EA Sundaram, CIO - Equities, DHFL Pramerica MF has provided a clue to the answer to this hair-splitting question. His analysis of the stock market behaviour in the last 39 years during 13 different government tenures show when you are invested for the length of a normal term of a government, you will not lose money. It's that simple. Even when elections lead to short-lived government formations, and we have seen some that fell in a matter of days and months, stock markets did not lead to losses. Here's a detailed report. Known event, unknown fear Politics has always guided economic policies. Markets like a political system that encourages private enterprises, a proper regulator system is followed and where long-term economic growth and corporate profitability have the potential to