While a cursory look at stock market performance over the last 30 years shows stock performing better under Democrats, the reality is markets don’t care who is elected, reports Al Brooks.
You cannot ignore the upcoming 2020 election, which theoretically affects the stock market. But much less than people think. I posted the following chart (see below) two weeks ago to show how much stronger the stock market performed under Presidents Clinton and Obama than under the two Bush presidencies and President Trump.
You could surmise that Republicans mess things up. But the correct conclusion is that the president’s party is not important to stock market performance.
The economy is sacred to the American people. No president is going to screw it up. We’ve designed a system that minimizes the damage any one idiot can do, no matter how much he tries to please his base and ignore everything else.
President Trump is campaigning on how bad a President Biden will be for the stock market. Well, most people believe Biden is going to win the election. If he was going to be terrible, the E-mini would be down at the March low, not up at the all-time high. No one cares.
It does not matter if Trump or Biden wins. American businesses are far more important than whatever fool lives at 1600 Pennsylvania Avenue. The only reason rich people care who wins is because politics are fun, and they want someone as president who shares their values. They do not believe the outcome will affect their portfolios all that much. The stock market is telling us that.
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