No Matter Who's in the White House, Stock Investors Win

The electoral horse race simply doesn't drive stock market performance. And the fact of the matter is, the one who wins it doesn't drive stocks, either... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] No Matter Who's in the White House, Stock Investors Win By Sean Michael Cummings, analyst, True Wealth --------------------------------------------------------------- My grandmother was on the phone, giving me her "stock market tip" of the week... "I think this is going to be a big deal for stocks," she told me. "Kamala Harris just raised $200 million in her first week of fundraising." Harris is now the Democratic presidential nominee after President Joe Biden's exit from the 2024 presidential campaign. Her campaign shattered fundraising records after the announcement. Now, my grandmother is sharp for her age. But she absorbs the same amount of information as just about anyone else. And she's holding on to a classic misconception about the stock market... We've already debunked this myth in DailyWealth. As I've shared a few times this year, the electoral horse race simply doesn't drive stock market performance. And the fact of the matter is, the one who wins it doesn't drive stocks, either... --------------------------------------------------------------- Recommended Links: [Here's What You Missed Last Week: Porter's Urgent Update]( The CEO of the world's largest independent financial research firm, Porter Stansberry, just answered your most pressing questions: Is the new AI mania, which already rivals some of the biggest financial bubbles in history, about to destroy your wealth? Is the market crash that he has been calling for just around the corner? And what exactly should you be doing next? [Click here to stream the replay now](. --------------------------------------------------------------- [99% of Investors Are Making This Nvidia Mistake]( Nvidia has had an incredible run. But if you're buying Nvidia alone to potentially profit from AI, you're making a mistake. Senior technology analyst Eric Wade says there are four "backdoor" plays that could double or triple your money this year thanks to Nvidia but are trading for a fraction of the cost. [Click here to get all the details](. --------------------------------------------------------------- Since March 1933, America has sworn in 15 presidents. Meanwhile, the stock market has risen 79,881%. Stocks tend to climb over time, no matter who controls the executive branch. But it would make sense if one party drove more of these gains than the other... You might be inclined to think that Republican pro-business policies spur market outperformance, or that Democrat social programs fuel economic growth... But the truth is, American business and American politics function in separate worlds. Bull runs and bear markets unfold in their own time, regardless of who is in office. To investigate this, I looked at returns in the S&P 500 Index for every presidency going back to Franklin D. Roosevelt. Then, I annualized the data. This gave me an apples-to-apples comparison of stock performance no matter how long a president stayed in office. The chart below shows annualized stock returns by president, including party affiliation. And performance has far less to do with politics than you might assume. Take a look... If you're up on market history, it should come as no surprise that the stock market has performed well through most presidencies. But finding a clear pattern between stock performance and presidential party is more difficult than it seems. For the sake of argument, let's try to draw a few conclusions about the data... You'll notice Democrats have never been in power for a stock market fall. But Republicans presided over three. This gives Democrats a significant edge based on average annualized returns. Take a look... Stocks have performed more than twice as well under Democratic presidents as they have under Republicans. So based on the data above, you might conclude that the Democrats are the better party for stocks. But again, this would be an oversimplification... because we can't know whose policies are driving market gains. For example, take the 25% annualized return during Bill Clinton's presidency. Should we credit the gain to Clinton himself? Or was it the conservative economic policies of his predecessors – Ronald Reagan and George H.W. Bush – taking effect? Or was it simply a case of "right place, right time" as the dot-com boom took over the market? There's no way to know for sure. And anyone who says otherwise is probably pushing a political agenda. In short, don't obsess about how U.S. elections will impact the market. It's much more important to buy when the bull run is on. We're in the midst of one right now. Even with the recent pullback, the market is up roughly 30% since bottoming last fall. So no matter who takes office this November, you want to own stocks today... because history says the uptrend will probably continue. Good investing, Sean Michael Cummings Further Reading "Election Day is the biggest day in the political calendar," Sean writes. "But in terms of the stock market, it's more or less just another day." History shows that even in the short term, we shouldn't expect a stock market shake-up in November... [Read more here](. We've seen a recent "jolt of fear" from investors. Stocks have fallen in recent days. These kinds of pullbacks can be worrying in the moment. But according to the data, a volatility spike like this doesn't mean the end is near... [Learn more here](. Market Notes HIGHS AND LOWS NEW HIGHS OF NOTE LAST WEEK Brown & Brown (BRO)... insurance Equifax (EFX)... credit reports AbbVie (ABBV)... pharmaceuticals Novartis (NVS)... pharmaceuticals AstraZeneca (AZN)... pharmaceuticals McKesson (MCK)... health care giant Quest Diagnostics (DGX)... medical data Labcorp (LH)... medical testing Hologic (HOLX)... medical devices GoDaddy (GDDY)... website hosting American Tower (AMT)... communications REIT Imax (IMAX)... movie theaters Coca-Cola (KO)... soft drinks Keurig Dr Pepper (KDP)... soft drinks Campbell Soup (CPB)... soups and sauces Colgate-Palmolive (CL)... household goods Duke Energy (DUK)... utilities Consolidated Edison (ED)... utilities Fortis (FTS)... utilities NEW LOWS OF NOTE LAST WEEK Intel (INTC)... chipmaker STMicroelectronics (STM)... chipmaker Weibo (WB)... Chinese smartphones Atlassian (TEAM)... collaboration software Lululemon Athletica (LULU)... athleisure Dollar Tree (DLTR)... discount retail Avis Budget (CAR)... rental cars American Airlines (AAL)... airline ConocoPhillips (COP)... oil and gas Halliburton (HAL)... oil services Nutrien (NTR)... fertilizer --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You're receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. 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