Stocks See Similar Gains Under Democrats and Republicans
• The S&P 500 stock index has grown at an average annual rate of 9.8% under Democratic presidents and 6% under Republican presidents. However, the median growth rates are similar at 8.9% and 10.2% respectively.
• Looking at annual returns, the S&P 500 grew by an average of 11.4% annually under Democrats and 7% under Republicans. But these figures can be misleading.
• Presidents have limited control over the stock market. Many other factors drive returns, like company earnings, economic events, etc.
• Both parties can cherry-pick statistics to claim they are better for the stock market. Investors should ignore such claims.
• Over long periods, the S&P 500 can be expected to return around 10.5% on average annually, regardless of which party holds the presidency.