What History Tells Us About Presidential Elections and the Stock Market.

Investors looking to position their portfolios for potential outcomes of the upcoming presidential election can gain strategic insight from historical performance patterns. While stocks tend to go up regardless of which party controls the White House, they tend to go up more during Democratic administrations. However, the makeup of Congress also plays a role in market performance. Historical data suggests that cyclical stocks tend to outperform after a Democratic win, while defensive stocks perform better after a Republican win. It is important to note that historical patterns may not repeat themselves, and it is advisable to have a portfolio that is robust to a range of scenarios. [Extracted from the article]