Biden versus Trump. Some speculate that the future of the republic hinges on the outcome of the next election. But for smart investors, it doesn't really matter who wins.
Conventional wisdom says that those liberal Dems are generally bad for the economy and the stock market because of their big-government tendencies, while fiscally conservative Republicans are good. This widely accepted belief is actually fake news if you look at data going back to the end of World War II.
“Stock markets do perform better under Democrats than under Republicans. That’s a well-known fact, but it does not imply cause and effect,” says Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania. From 1952 through June 2020, annualized real stock market returns under Democrats have been 10.6% compared with 4.8% for Republicans.
With the 2020 election less than four months away, some investors are fretting about the pros and cons of a Trump vs. Biden presidency. A Democratic sweep would almost certainly mean a rollback of Trump’s massive corporate tax cut (a negative for stocks), but additional economic stimulus (which the market apparently loves despite deficit implications) and stability on the China trade front would be a big positive.
PRESIDENTIAL PERFORMANCE
Which presidents have delivered the best stock returns? So far Democrats are dominating.
SOURCE: FORBES.COM
No comments:
Post a Comment