ECP | Luxemburg, 23.10.2020
According to a study titled “Elections, stock market returns & your savings” by Prithy Serrao from SmartBe Wealth: Democratic presidents were on average better for the stock market than Republicans: 8.3% annualized return in Democratic Presidents compared to 3.6% with a Republican leader.
Are we in for a Blue Wave in case of a Biden victory? Less protectionist sabre rattling, strong stimulus measures, and increased green energy spending would certainly help the economy and ultimately support the stock market. An uncontested victory of Biden and a Democratic win of the Senate would however also increase the likelihood of policymakers legislating Big Tech to break some of the quasi-monopolies these companies are currently enjoying.
Mit freundlichen Grüssen aus Luxembourg
Léon Kirch, CIO & Partner
