Democrat or Republican: Which is Better for My Portfolio?

A question asked of us every four years. Some initially argue Republicans are more business friendly while others argue the Democrats stimulate growth through spending. The answer may surprise you. 

“According to McGraw-Hill’s (MHP) S&P Capital IQ, the S&P 500 has rallied an average of 12.1% per year since 1901 when Democrats occupy the White House, compared with just 5.1% for the GOP.”

Now before you run to the polls with this it’s important to know Presidents, like all of us, have no control over the stock market. The real drivers are macroeconomic and macro-political trends of which are determined by private industry and Congress. It’s also worth pointing out the sample size to support this data is extremely small. There have been only six stretches of each party holding the White House since 1900.

Ironically the best time for markets has been when there’s conflict between Congress and the presidency. Some think the conflict allows private industry to innovate free from government intervention.

Quote Source: http://www.foxbusiness.com/markets/2012/09/04/history-shows-markets-gdp-outperform-under-democrats.html

Image Source: http://money.cnn.com/2015/10/28/investing/stock-market-democrats-republicans/