RT Journal Article
SR Electronic
T1 Don't Worry About the Election
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 101
OP 109
DO 10.3905/jpm.2004.101
VO 30
IS 4
A1 Scott B. Beyer
A1 Gerald R. Jensen
A1 Robert R. Johnson
YR 2004
UL https://pm-research.com/content/30/4/101.abstract
AB In this election year, it is interesting to examine historical security market returns in terms of the political party of the President, the general monetary policy stance of the Federal Reserve, and political gridlock, when different political parties control Congress and the executive branch. It is an innovation to evaluate the three variables jointly. Such a combined analysis reveals that long-term security returns are strongly related to shifts in Fed monetary policy but generally invariant to changes in the political landscape. Investors should thus focus their attention on Fed actions rather than political outcomes.