Stock market performance after elections
There are a few different variables that can affect the stock market performance: After an election, stock market returns tend to be slightly lower for the following year, while bonds tend to outperform slightly after the election. It doesn’t seem to make much difference which party takes office, but it does matter whether control of the White House changes hands. When a new party comes into power, the analysts found that stock market gains averaged 5 percent. When the same president is re-elected or if one party retains control of the White House, returns were slightly higher, at 6.5 percent.