While the market often attempts to predict election outcomes, the party that wins the White House has historically had less impact on long-term wealth accumulation than many might think.
The chart below illustrates what happens when we invest $10,000 on November 1st of each election year since 1948 and hold it for ten years. In 16 of the 17 election periods, that $10,000 investment grew beyond its starting amount—only the “lost decade” was an exception. More notably, in 13 of those periods, the investment more than doubled. What’s interesting is how evenly the results are split: 7 times under Democratic presidents and 6 times under Republicans.
This demonstrates that the market’s long-term growth isn’t determined by political control. It’s a clear reminder of why it’s crucial to tune out the political noise and stay committed to your financial plan. By staying focused on the bigger picture and maintaining a disciplined approach, investors can achieve successful outcomes regardless of which party is in power.
