Historical data shows the Republican-controlled Congress is driving the strongest earnings growth in the United States, according to Strategas analysts.
Analysts noted that “the Republican Convention on average produced the strongest earnings growth for the index, with earnings growth averaging 15.5% with Republican support.”
That’s the conclusion reached by Washington politics team Strategas, which tracked data illustrating stock market performance under various configurations of party control in Washington.
Recent client inquiries have resulted in fundamentals-focused analysis that has highlighted superior earnings growth associated with Republican Congressional control.
The Strategas note also highlights the potential for increased market volatility as the upcoming elections approach and even beyond them.
“While election years often see an increase in volatility as the election approaches, the expected post-election increase in volatility is worth keeping an eye on,” they said.
Analysts have suggested that market concerns may be growing due to the possibility of uncertainty about the election results on election night, a scenario that could have a significant impact on market stability.
Investors are advised to exercise caution heading into the election season, given historical performance patterns associated with varying configurations of party control and the potential for increased market volatility.