This article is from before the recent elections, but now that we’re a few weeks post-Midterms, the buzz is settling & investors are thinking about the effects of this election on markets. Is your finance team forward-thinking enough to plan for these changes with your goals in mind? Learn about the Loyalty Alliance way – contact us.
“The November U.S. midterm elections are coming up fast. President Donald Trump and a Republican Congress have implemented several market-moving changes since the last election, but polls suggest Democrats could regain a majority in the House of Representatives. Bank of America economist Joseph Song recently looked at what is on the line for investors this November and how it could impact the market.
The S&P 500 has performed extremely well under Republican leadership since the 2016 elections, but Song says a change from the status quo may not necessarily be bad news for investors. Song says Republicans have already accomplished many of the goals that drove stocks higher following the 2016 election. Historically, the S&P 500 has performed best under a Republican president when opposing parties control the House and Senate, averaging a 12 percent annual return. However, Song says if Democrats capture both the Senate and the House, investor sentiment and stock prices might take a hit.”