Past performance does not predict future results. That is, what happened in markets the last time a party was in the White House may not happen in the future.
Technology innovations, interest rates, and business profitability may have a greater influence on the market and the U.S. economy than presidential election results.
The S&P 500 has been positive in 16 out of 23 presidential election years since 1928.
Since 1952, the Dow has increased an average of 10.1% in election years with a sitting president running for re-election.
When it comes to the stock market and investing, it really doesn’t matter which party wins. Normal variations in market returns eclipse any minor differences from president to president.
Long-term investment success depends more on the strength of the U.S. economy than the party in the White House.
The S&P 500 has an 86.4% success rate at predicting a White House win. Historically, if markets were down in the 3 months leading up to the election, the incumbent often lost.