Presidents, Congress, and Market Scenarios – Nov 11, 2020
Happy Veterans Day and warmest wishes to all those who have served our nation.
Today’s topic centers on market scenarios with a focus on political parties in control.
Joe Biden is the projected winner of the election, and investors believe Senate control will eventually reside with Republicans.
How do stocks perform based on Congressional makeup and which party holds the White House?
On average, stocks have performed well when either a Republican or Democratic president is matched up with a divided Congress.
Investors corner
The table of returns also implies that stocks have a long-term upward bias no matter which party holds the White House or controls Congress.
Historically, the economy, corporate profits, interest rates, and Federal Reserve policy have had the biggest influence on market direction.
A holistic, well-diversified financial plan that is designed to capture the upward bias in stocks has historically been the best path to reaching one’s financial goals.
Created 2020-11-11 15:54:43
