Stop stressing about which party is better for the stock market: The data shows it doesn't matter much

  • 📰 CNBC
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Are Republicans or Democrats better for the stock market?

This combination of pictures created on October 30, 2020 shows US President Donald Trump speaks during a campaign rally at Manchester-Boston Regional Airport in Londonderry, New Hampshire on October 25, 2020. Democratic Presidential candidate and former Vice President Joe Biden delivers remarks at a voter mobilization event in Cincinnati, Ohio, on October 12, 2020, where he will speak to the importance of Ohioans making their voices heard this election.

"I think people overestimate the importance of politics for investing," said David Kelly, chief global strategist at J.P. Morgan Asset Management.Data over the past 78 years shows that party control over either chamber has relatively little to do with long-term changes in the broad S&P 500 stock index.

The data yields similar results for the November to November cycle, which is a gauge of market sentiment to the election, as well as January to January, which shows the actual market performance of the Congress.Where you start to see more of an impact is the combination of party control in both chambers of Congress.

But when you broaden it out even further to consider the party of the president in tandem with party control of the two chambers, the trend of a split Congress being best for stocks doesn't always hold true. "It's a good example of how you can have data tell whatever story you want," he said. "If you want to favor the Democrats, talk about the presidency. If you want to favor the Republicans, talk about House control."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

nothing will change.

Regardless of who wins, stock market will go up. Stock market has tanked past few months as people have taken chips off the table. You're going to see more risk-taking (and more investment) after election volatility is over which means bull market.

Trump

It’s about taxes, not the S and P 500. Wake up.

Unless you own tons of stock,the stock market really doesn’t impact you

Best stock market performance was Clinton followed by Obama. Facts are a stubborn thing. Trump is chocking the economy with hate (instead of love) & tariffs (instead of diplomacy) besides being the only leader in the world mismanaging the Covid crisis.

don't think joe kernan got the memo, he is practically begging people the evil boogey man is going to take away all their money and socialist joe is existential danger to them. good news program!

Where is ElectionDay diversity here on SquawkCNBC with Election Day guests tuesdaymood

Neither - because business should be non-partisan and look to succeed irrespective of the party in government...

joe is so obviously a trumpster his comments are out of control as the election closer. Maybe he needs to go to FOX

dont know, you want facts or faux-neutrality?

Well lets see one party wants to raise my taxes and raise capital gains taxes on investments:pretty obvious answer

Is this reallit itmportant? what about people, health, healthy food...no, its all about criminal corporations

If you use data from 1960 on, the returns are greater under Democrats. Also, every recession in the last 40 years was under a republican. Every single recession.

Switching channels until JoeSquawk is off our screens today. Such blatant Trumpism is sickening to watch on Election day. Shut him up, please.

Trump 2020 vote Trump, make America strong economic.make America to be safe. Make America to be proud again.

How about we all ask ourselves, what party is better for 'AMERICA'!? This orange buffoon has us all so divided it makes me sick! Don't u ppl see the damage he's done!? Fuck the stock market! I mean the damage to family relationships or our country's image on the world stage!?

If we’re all dead from covid, the stock market doesn’t matter. VoteHimOut

What a nice song

thank you very much for your work

Neither. Trump is what's good for the stock market.

Does it matter? Seems the stock market has nothing to do with regular folks.

Ok CNBC

Yes

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Trump supporters slow and stop traffic on the Garden State Parkway - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. DumpTrump2020 Nope just more awful liberal reporting!!! The cops stopped them at their exit. More good news please(((
Source: BusinessInsider - 🏆 729. / 51 Read more »