As Political Conventions Get Underway, Investors Should Brace for More Stock Market Volatility

The biggest highlight from the Republican and Democratic conventions this month may be what happens to your investments. Election years have been good for the stock market, as long as investors are able to stomach the volatility that comes with them. 'The election is sort of on a simmer mode now I'd say, (with) the Republican convention this week the Democratic convention in a couple of weeks. Markets won't really start to pay attention until September or so, so there's a lot of catalysts out there for that potential volatility,' explained John Canally, economist and strategist with LPL. Canally said he wouldn't be surprised to see the market swing by 10% in either direction between now and Nov. 8. Election years historically have been a positive for Wall Street. Year-end gains have averaged 10%, with the exception of 2008 when the country was in the midst of the Great Recession, according to LPL Financial.