Stock Market Performs Better Under Democrats

Two studies published in the last few years have shown that the US Stock market performs better under a Democratic president than a Republican. This is a little surprising to me. What does it mean?

I don't know. But if I had some money invested (I do), I might want to consider this (I will).

One of the studies shows that the market performs significantly better under a Dem. The other study shows that the market is less volatile.

Better performance and reduced volatility? Sign me up!!!

Seriously, is it because Republicans "set the table" with lower taxes, reduction or elimination of stifling regulation, are pro-growth, and claim to be supply siders,

OR,

Is it because the Democrats know more about the economy?

I think it's some of both, and then some. But to an outsider with the only facts of less volatile and better performing markets when a Democrat is in office might just pick a Democrat.

I don't like to talk politics here (if you want my views on that, and then some, go here.), just personal finance and economics. Take these two research reports under advisement. It's fun to think about all the causes and effects and coincidences. But I think that's all we can do here.

Stock markets historically do better under Dems than Reps. - Jan. 22, 2004

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