Thursday, December 3, 2015

Does Control of Congress (the Senate and House) Matter to the Markets?......A GREAT GRAPHIC

Does Control of Congress (the Senate and House) Matter to the Markets?

The chart below shows annual stock market returns with various combinations of party control of the Presidency, the Senate and the House of Representatives. Historically, the market has performed the best under Republican control of Congress with either party in the White House. This is the current situation, with a Democratic president and a Republican Congress. The weakest market returns have occurred with a Republican president trying to work with a Democratic or split Congress. Think back to Nixon's five years in office and George W's first two years in 2001 and 2002, with returns of -13% and -23%, respectively.


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