It’s not as if it doesn’t matter who becomes the next president of the United States. It does. It’s just that there’s “no significant relationship between the president’s party affiliation and the returns to either equity or fixed-income securities,” according to the authors of a new study, “What to Expect When You’re Electing.”
Unlike other studies which typically examine say stock-market returns and the outcome of the election, the authors of this study looked at “security-market returns relative to the political party of the president, the Federal Reserve’s monetary policy, the year of the president’s term, and the state of political gridlock.”
And what they found is this: Investors should focus less attention on the party of the president and instead more closely monitor Fed actions.
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