What Does the US Presidential Election Mean for Markets?

What Does the US Presidential Election Mean for Markets? PR Newswire LONDON, September 4, 2012 LONDON, September 4, 2012 /PRNewswire/ -- US market performance since 1900: Republicans versus Democrats Although the Republicans are widely seen as being generally more favourable to business, since 1900, stock markets have actually performed better under Democratic presidents. Although the Republicans have spent more time in office over the last 112 years, the Democrats have posted an average return over month (0.73% to 0.38%) and average monthly return over the same month a year earlier (8.00% to 6.37%). Normally one would expect higher returns to come with higher risk but under the Democrats, risk as measured by the standard deviation has been lower based on both monthly (5.22% vs 5.56%) and yearly (20.25% vs 22.13%) volatility. Months Total Avg Ann Avg Mon President Party In Office Return Return Return William McKinley Republican 20 10.61% 6.36% 0.69% Theodore Roosevelt Republican 90 10.96% 1.46% 0.28% William Taft Republican 48 (1.23%) (0.31%) 0.04% Woodrow Wilson Democratic 96 (7.50%) (0.94%) 0.12% Warren Harding Republican 29 16.22% 6.71% 0.60% Calvin Coolidge Republican 67 268.60% 48.11% 2.08% Herbert Hoover Republican 48 (83.91%) (20.98%) (2.