How Much Impact Does the President Have on Stocks?

Dimensional Fund Advisors

It’s natural for investors to look for a connection between who wins the White House and which way stocks will go. But regardless of who wins, nearly a century of returns shows that stocks have trended upward.

Shareholders are investing in companies, which focus on serving their customers and growing their businesses, regardless of who is in the White House. US presidents may have an impact on market returns, but so do many other factors—the actions of foreign leaders, interest rate changes, changing oil prices, and technological advances, just to name a few. 

Stocks have rewarded disciplined investors for decades, through both Democratic and Republican presidencies. For an interactive version of the chart below, visit: How Much Impact Does the President Have on Stocks?

Source: Dimensional Fund Advisors

In USD. Growth of wealth shows the growth of a hypothetical investment of $1 in the securities in the S&P 500 index. S&P data © 2024 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.

Data presented in the growth of wealth chart is hypothetical and assumes reinvestment of income and no transaction costs or taxes. The chart is for illustrative purposes only and is not indicative of any investment.

This content is developed from sources believed to be providing accurate information as of the date of publication, and is intended for informational purposes only. No content should be construed as legal or tax advice. Please consult your financial professionals for specific information regarding your individual situation. Past performance does not guarantee future results. All investing involves risk, including risk of loss.