Are you wondering if stocks perform better when we elect a Democrat president versus a Republican president? If so, I can help you find a better way to look at finance during an election year. Several factors can affect what the markets do in any given election year, and political parties may have less to do with market returns than you think.
Click here to see it! Political parties aside, guess what the average market returns were for election years over the last century… They were more than 11%.1 And what factors may matter more than the political party of a president-elect when it comes to market performance? Policy, trade, and what the Federal Reserve is doing can matter more.1,2 But they aren’t the only factors involved in election year market returns.
Sources:
1. https://advisor.morganstanley.com/the-ernie-garcia-group/documents/field/e/er/ernie-garcia-group/S%26P%20500%20in%20Presidential%20Election%20years.pdf
2. https://www.usbank.com/investing/financial-perspectives/market-news/how-presidential-elections-affect-the-stock-market.html