The U.S. election drama is in full swing. Generally US elections tend have lots of lights, fury and shows just like Hollywood movies and very little substance. One party’s billionaire candidate promises to “Make America Great Again” without explaining what that actually means. He also says that he will bring the jobs back from foreign countries ass if a president has any power to do that. Regardless this candidate is pull record crowds. A candidate from the other party goes to the other extreme promising to do many things which are practically impossible to happen in this country. One such thing he promises is free college education. Another candidate from the same party hopes to win the presidency claiming she is best suited to run this country not only because of having well-heeled international experience but also being simply a female. Apparently having the first female president seem to mean something to many people similar to having the first black president for some others.
Anyway how do US stocks perform under a democrat president vs a republican president?
According to an research report by Fidelity portfolio managers Aditya Khowal and Nick Peters, US stocks have outperformed under democrats than republicans.
From the report:
Stock markets under Democrat presidents have, on average, outperformed those under Republican presidents, with average returns of 10 per cent over a Democratic president’s term since 1928, against 1.8 per cent for a Republican president.
Out of the 22 terms of office since 1928, four terms under a Republican president ended with negative returns, which compares to just one negative return under a Democratic president, Roosevelt’s second term in office.
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Source: Democrats versus republicans: who is best for the US stock market?, Money Observer
It is surprising to see that stocks perform under democrat presidents than republican presidents since republicans are traditionally big supporters of businesses.
