With midterms coming up next week, it’s important to remember that as hard as it may be, history shows that it’s not advisable to let politics impact your investment decisions. We could provide countless examples where one side of the political aisle thought the stock market was doomed because the other side was set to take power. Page 12 of our Reasons to Invest PDF has some great analysis on this topic, but the graphic below is an excellent case in point as well.
As shown, over the last nine sessions of Congress since the Financial Crisis, we’ve seen five of the eight possible combinations of party control in Washington, from one-party rule by both Democrats and Republicans twice each, to several forms of divided government. While power in DC has changed hands again and again, there has been one constant: the S&P 500 has risen during every one of the last nine sessions.
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