Home » Markets » Tight Senate races more important for stocks than presidency: analysts
Tight Senate races more important for stocks than presidency: analysts
Will stocks surge in 2021 no matter who wins election?
UBS managing director and senior portfolio manager Jason Katz shares his thoughts on market volatility and the presidential election.
The battle to win control of the Senate is tight in key states and may be more important for the future of the stock market than the presidency.
Continue Reading Below
“Senate control historically is associated with the greatest difference in two-year returns, with bulls preferring GOP control,” wrote a team of New York-based Wells Fargo Securities analysts led by Christopher Harvey.
TRUMP'S CORONAVIRUS INFECTION EPITOMIZES 'OCTOBER SURPRISE,' BUT IMPACT REMAINS ENIGMA
Republicans have held the Senate in 12 of the last 36 election cycles with the S&P 500’s two-year total return, which assumes reinvested dividends, averaging 36.5%. The 24 Democrat-controlled Senates, meanwhile, have yielded an average total return of 21%.