Ever wonder about "gridlock's" effect on the markets? Rumor versus fact?
Here is an interesting article from the highly respected Certified Financial Analysts (CFA) Institute.
Bottom-line:
(1) "gridlock is good" for stocks is a myth
(2) Small company stocks especially do good during "political harmony"
(All branches of gov't controlled by same party)
(3) Large companies do provide higher returns than small companies during gridlock periods
(4) But, generally, equities overall suffer during political gridlock
(5) Good news: Fixed income investment (bonds/cash) returns were consistently higher during periods of gridlock than in periods of harmony (1949 - 2004)
Just more interesting tidbits for your information,
Phil
comment on pdf.: "Gridlock's Gone, Now What?' Financial Analysts Journal, Vol. 62, No. 5
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.