Do Presidents steer markets?

Jul 03, 2020 | Jeremy Goldfarb


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It's not too early to start thinking about the potential outcome for the US Presidential election. As much as we (Canadians) would like to believe that we are immune to the outcomes in the US, the smarter money would say no. As the US goes, so does Canada, at least from an economic standpoint. So, as an investor, you are interested in the outcome of the US presidential election. 

 

Interestingly enough, the stock market has been fairly successful in predicting outcomes over the past 90 or so years. I turn you to a market blog by LPL research to read up further on this, though it is not the at the crux of this post. 

 

What I find even more interesting is the chart below. (courtesy of our Portfolio Advisory group) 

Despite what most may think, a Democratic president is more favorable to markets than a Republican (although Hoover certainly did not help start things off on the right foot).

Now you have two things to think about leading into November.