Stocks Aren't Scared of the Democrats' Washington Sweep
- Democratic control has coincided with 9.1% annual returns: LPL
- Fragile economy means corporate tax hike may not be imminent
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For all the risks U.S. investors are still facing, the political party of the incoming president isn’t necessarily one of them.
Joe Biden, who will become the 46th U.S. president on Wednesday, will run the White House with his Democratic Party controlling Congress. Historically, such a scenario has coincided with a 9.1% annual return for the S&P 500 going back to 1950, data compiled by LPL Financial show. That’s not as good as the performance during a split government, but still above the average for all years.