The Presidential Portfolio
Whether it is a Republican Administration or a Democratic one has an impact on your portfolio, as least statistically. This is what this Forbes article "The Presidential Portfolio" is trying to say. Some of the observations:
1. Republican wins give the stock market a short-term boost.
"[S]ince 1888 the market has risen an average of 0.7% the day after a Republican win and dropped an average of 0.5% after a Democratic win."
2. Longer term, stocks do better under Democrats.
"Since 1927, stock returns adjusted for inflation have averaged five percentage points a year higher under Democratic presidents than under Republicans. ... Since 1929, 30% of the months under Republicans have been spent in recession, compared with just 10% under Democrats."
3. Stocks do best later in a President's term.
4. Bonds, unlike stocks, do better under Republicans.
"Since 1929, returns on intermediate-and long-term bonds have averaged five points a year more under Republicans."
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