Sources have revealed that a 2013 paper has found the S&P 500 had delivered a return more than five percentage points a year higher under the former party than the latter (since 1948). Growth of GDP, employment, real wages, profits and productivity were all better under the Democrats as well.



Meanwhile despite that trend, investors are generally assumed to favor the Republican candidates, on the grounds that they favor a low tax, less-regulated economy, but this is an unusual election, where a Bank of America poll of global fund managers have found that a Republican victory is one of the two great tail risks facing the markets, along with EU disintegration.


Image result for stock market

That is because Donald Trump is the candidate and in some respects, his approach resembles that of previous Republicans and he favors tax cuts and reductions in non-discretionary public spending, but in others, he diverges significantly, particularly on free trade. 



For the stock market, it seems likely there would be an instant sell-off on the news given the Bank of America poll, but there is a two-month gap between election and taking office and Wall Street may recover its equilibrium and the question would be whether “tax-cutting Trump” was in the ascendant or whether “trash talking Trump” has taken the helm.


మరింత సమాచారం తెలుసుకోండి: