It has already been an eventful year in U.S. politics and the election is still a couple months away.

Questions often come up as we get closer to the election, most notably, whether a Republican or Democratic president will be better for the markets. The short answer is, it really doesn’t matter. I realize that’s not the answer Fox News or CNN would like you to believe, but history shows us that corporate earnings growth is considerably more important to the markets than which party is in power. Regardless of the outcome and any possible changes to immigration and tax policies - great companies will work thorough it and continue to be successful over time. 

To quote the late Charlie Munger, “The first rule of compounding is to never interrupt it unnecessarily.” I’m not saying it will always be a smooth ride, in fact I anticipate a lot more short term volatility before American’s head to the polls, but over time, sticking to the process and the plan will always lead to better outcomes.

If you would like some further reading on this topic, we've published two election focused articles that also may be of interest.

Key Things to Know About U.S. Elections

Kelly Bogdanova, a portfolio analyst on our US Portfolio Advisory Group, lays out 4 key points as we head into the election, outlining the key issues that will be up for debate and the influence that lobbyists have on legislation

No Free Reign - The Realities of Presidential Power

A second article in the series highlighting the limits to Presidential power and the impact a split House / Senate has on decision making.