Does the Stock Market Favor a Republican or Democrat President?
Submitted by Robert Gordon & Associates, Inc on October 14th, 2020Are equity market returns higher when your political party is in the White House?
As political tensions boil ahead of the 2020 U.S. presidential election, you may be asking, “Which party is tied to the highest stock market returns while in the White House?”
The truth is that employing a nonpartisan buy-and-hold strategy would have generated substantially higher returns than investing only when a Republican or Democrat was in the Oval Office.
As revealed in the chart above, the true winning strategy isn’t political party investing and trying to time the market. Instead, the most effective strategy is staying invested in the market over the long term.