“We know some are ready to go all in on a Biden family-investment strategy,” Marcelli said. “But when it comes to our guidance to our clients, it still remains that we don’t advise investors to try and predict the outcome and make drastic portfolio moves.”
From 1926 to 2018, the stock market has performed best under a Democratic president and a divided Congress, with an annualized return of 16.9%, UBS strategists including Justin Waring said in a July 27 blog post. Still, they cautioned about reading too much into that statistic.
“In all likelihood, there are explanations beyond politics for these apparent patterns,” they wrote. “The jury is still out with regard to the extent to which politics affects market returns.”
This article was provided by Bloomberg News.