PT  - JOURNAL ARTICLE
AU  - Ray R Sturm
TI  - The Effect of Political Party Combinations on Stock Returns
AID  - 10.3905/JOT.2010.5.2.102
DP  - 2010 Mar 31
TA  - The Journal of Trading
PG  - 102--109
VI  - 5
IP  - 2
4099  - https://pm-research.com/content/5/2/102.short
4100  - https://pm-research.com/content/5/2/102.full
AB  - Many studies have documented the excess stock returns under Democratic presidents. This article considers not only the contemporaneous effect, but the lagged effect on stock returns of political parties in both the presidential office and Congress. It appears that the contemporaneous Democratic presidential premium is present mostly when the Democrats control the presidency, the House, and the Senate. Conversely, there appears to be both a contemporaneous and lagged Republican premium when the Republicans control two of the three, but not all three. Therefore, while more research is necessary, it appears that at least some Democratic influence is generally beneficial for investors.TOPICS: Statistical methods, exchanges/markets/clearinghouses, equity portfolio management