News
Politics shapes investor sentiment but markets keep rising
Analysis shows investors favor parties in power, leading Republicans to increase equity exposure after 2016 and Democrats to shift to safe assets after Obama’s election. Despite partisan bias, the S&P 500 has risen about 330% since 2016 and 427% over 20 years, while Europe’s STOXX 600 lagged, up only 27% in the same period. Midterm elections historically boost S&P returns by 15.4% the following year. US federal debt recently hit 100% of GDP. The piece argues policy impacts are modest compared to broader economic forces.