It is a common perception that
the stock market will fare better when a Republican is in the White
House because the Grand Old Party tends to be pro-business. A related
perception is that Democrats hinder economic and market growth with
higher taxes and increased regulation. The historical evidence just
doesn't support either notion.
In
truth, investors who stay the course are likely to fare much better
than those who invest only when one of the two major political parties
controls the White House. In
fact, if you look at the returns of the Dow Jones Industrial Average
since its invention in 1897, it's clear the stock market does not favor
either party.
Everything Investors Need to Know—and Should Ignore—About the Upcoming Election
- Gridlock doesn’t mean nothing gets done.
- Changes in Washington don’t typically come all at once but in increments.
- Campaign rhetoric doesn’t always influence what happens during a president’s tenure.
- Consumers and businesses have a far greater impact on the economy than the government.
- The state of the economy influences who is president, not vice versa.
- The stock market doesn’t care if the public is happy with who is president.
The U.S. election will, as always, give us sufficient reasons for both
optimism and despair but as an investor, your long-term goals, plan and
behavior should shape your investment decisions, not your reaction to
who wins the presidential election. However, if you have needs or
concerns that you would like to discuss with us in person, please give
us a call at 281.990.7100 or email
advisors@selahfs.com!
"Well-positioned, well-led companies will create investment value regardless of who sits in the White House."
Jerry Webman, Ph.D., CFA Chief Economist for OppenheimerFunds
