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People have debated for decades whether Wall Street rides faster on a donkey or an elephant.
With that in mind, remember this: Stocks did just fine the last time Republicans had the political equivalent of a hockey power play from 2017 to 2019 and the last time Democrats had the same thing between 2009 and 2011. The
S&P 500 Index (SPX) posted strong double-digit gains both of those particular occasions when one party held the White House and both houses of Congress.
The Market As A Whole And The Sectors Within
While history doesn’t foretell the future, it’s clear that stocks can do well (or badly) under either party’s control. Remember, Democrats held all the levers of federal power in the late 1970s when things got rough, while Republicans controlled Washington in late 2018 when there was a steep Q4 slide.