Trading the New President

Presidential elections tend to have a profound impact on U.S. stocks, if only because the impact on the stock market mostly occurs as a kneejerk reaction after the election, and not necessarily because of policies that the winning candidate puts into play during their time in office. As a rough example, a Republican winner of the presidency typically sends stock prices up on the first Wednesday of November, while a Democratic winner sends stocks downward. Republicans have long been seen as the party of big business while Democrats as the party of the disadvantaged because of their larger tax policies. Read more “Trading the New President”