Which Party is Better for the Stock Market and Economy?
Frederick S.
Managing Director at MoneyMattersUSA, Advisory LLC and President at Foundation Insurance Services, LLC...Guiding you with proven financial strategies for growth, sustainability and peace of mind for life
As investors and professionals, we're often curious about the impact of politics on the economy and stock market. A recent research-based discussion sheds some light on this topic, comparing the performance of Democratic and Republican presidencies.
**The Data: *** The S&P 500 had an average annual return of 12.15% under Democratic presidencies, compared to 10.25% under Republican presidencies.
*Real Gross Domestic Product (RGDP) grew at an average annual rate of 2.35% under Democratic presidencies, compared to 1.95% under Republican presidencies. *
Real Private Consumption (RPRC) also grew at a faster rate under Democratic presidencies, with an average annual growth rate of 2.51%, versus 2.13% under Republican presidencies.*
*What Does it Mean? **While this study doesn't imply causality between political party affiliation and economic performance, it suggests that Democratic presidencies may be more conducive to stock market growth and economic expansion.
**Upcoming Week:**This week is crucial for the US stock market, with key data releases including the Federal Reserve's preferred Personal Consumption Expenditures (PCE) inflation data and personal income figures. Keep an eye out for these updates and how they might impact the market!
**Your Thoughts? **Do you think a president's party affiliation has a significant impact on the economy and stock market? Share your insights and opinions in the comments! **Stay Informed: **Stay up to date with the latest market news and trends. Follow me for more research-based discussions and analysis!