The Presidential race brings out strong emotions, not the least of which are about money. Many believe their candidate to be the champion to a strong economy and therefore, stock market. Let’s look at facts:
Over the last 50 years, when we have a Republican President and a Democratic controlled Congress, the stock market has averaged 9.5%.
During that same period, when we have a Democratic President and a Republican controlled Congress, the market has averaged 21.3%.
Does this mean when one party holds both Presidency and Congress we get returns off the chart? Let’s see:
When either the Republic or Democratic party has control over both the White House and Congress, the market has averaged a positive 11.3%.
When Congress is split, regardless of who is President, the market has only managed to go up 6.2%.
So, here is my wish list:
1. Congress is NOT divided in two controlling parties
2. Congress and Presidency ARE divided in two controlling parties
3. We average 50% return on the stock market over the next 4 years 😀
(Source: ETN Research)
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