Monday, August 1, 2016

Political parties and THE market

The market has more than recovered (about 170% so far) since the day when Obama took office. The S&P500 performance under Republicans vs. Democrats since 1926 to 2014 is approximately:

 Annualized return under Democratic presidencies: 13% 
 Annualized return under Republican presidencies: 6% 

The market is riskier based on the above statistics. In addition, there is a good chance that we will have either a non-politician president or a lady president for the first time (more materialized in 4/16). The market usually does not favor to this kind of change. Statistics do not mean it will happen but history repeats itself more often in investing. The above is an abstract from my book Complete the Art of Investing.

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