With a Democratic US President now in office and a Democratic Congressional majority, investors may be tempted to predict where US equity markets go in the coming months based on which political party is in power. Our suggests that investors may want to use a more nuanced lens when constructing go-forward investment strategy.
We examined three-month US equity market moves following the past five US presidential elections as reflected in performance of the US large-cap Russell 1000® Index and the US small-cap Russell 2000® Index. Findings suggest that, whether US political advantage runs red or blue, general market backdrop determines whether markets run green or red after elections.
Read the full blog post now at the link below