How Will the Market Fare Under Democratic Rule?
A Fidelity study that took stock market performance trends since 1948 found some remarkable trends. Presidential election calendar years have historically experienced solid stock returns. Since 1948, election years presided over by a Democratic administration saw an average market return of 15.4%. When Republicans were in power, the average return was 11.4%. Performance in years of Republican and Democratic presidential electoral victories rated Republicans at 12.5% and Democrats at 14.0%. This presidential cycle is unique because of the sweeping victories for the Democrats in both the House and Senate. According to Ned Davis Research, between 1901 and 2006, the market…
