Political Mix May Boost Dow

Stock market history suggests the combination of a Republican-controlled U.S. House and a Democratic president is the most likely to see the largest annual gain in the Dow Jones Industrial Average. Interestingly, Democratic presidents outpace Republicans consistently, but Republican Houses beat their Democratic counterparts over time. In the table here, the two purple quadrants show the Dow’s average annual growth in “dual-party” environments:

Even though valuations are somewhat stretched, stock market returns from November through April have dominated May through October by a long shot since 1955. Add that seasonal effect to the political environment, and we could be setting up for a decent tail wind.

Source:  BMO Private Bank

******

The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville.  The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.