Historical Market Valuations at Inaugurations

Matthew Allgood |

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As President Trump takes office, he is greeted with unusually high stock prices, a situation that can make the financial markets more sensitive to changes in policy. This unique challenge means that decisions made during his presidency could impact the market more significantly than usual. No administration has dealt with higher valuations when taking office. 

As no one knows what the future holds, we remain committed to actively managing the risk in your portfolio to meet your financial goals. Whatever the impact his decisions may have, we aim to achieve our risk parameters and keep your financial plan on track. 

Historical Market Valuations at Inaugurations

S&P 500 CAPE Ratios at the Start of Presidential Terms (1929 – 2025)

(CAPE = Cyclically Adjusted Price to Equity)A graph showing the number of companies in the cape peninsula AI-generated content may be incorrect.

Sources: Bloomberg, Redwood. Data as of 1/24/2025.

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.

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