.jpg)
According to Strategas analysts, historical data shows that a Republican-controlled Congress delivers the strongest earnings growth for the United States.
“The Republican convention on average generated the strongest earnings growth for the index with an average earnings growth of 15.5% in the Republican sweep,” the analysts noted.
This insight comes from Strategas’ Washington Policy team, which has tracked data showing stock market performance under different configurations of partisan control in Washington.
Recent inquiries from clients led to a fundamentals-focused analysis, revealing superior earnings growth associated with Republican control of Congress.
The Strategas note also highlighted the potential for increased market volatility as the next election approaches and even after it ends.
“While it is not uncommon for election years to see higher volatility as the election approaches, the expected high volume after the election is worth watching,” they stated.
Analysts noted that market concerns may be growing about the possibility of the election result not being known on election night, a scenario that could significantly impact market stability.
Investors are advised to exercise caution heading into election season, taking into account historical performance patterns associated with different partisan control configurations and the potential for increased market volatility.
