Your Ideal Obama Portfolio

Now that Barack Obama has secured the US presidency, what is in store for the investors? Although there are several monumental factors affecting the current economic environment (tightening credit, energy concerns, and a costly war), there is historical evidence that shows the stock market has behaved favorably while a Democrat occupies the White House. A study published by Wilmott Magazine reveals that in the first year following an election, the S&P has gained an average of 6.58% when a Democrat has won versus an average of 1.87% following a Republican victory.

Small cap returns are typically greater while a Democrat presides over the country, whereas large cap stocks perform better during a Republican presidency. On average, the last two years of a term outperform the first two years. The S&P has historically seen a 16.13% return in the last two years of Democratic presidency, and the gains were just 15.03% during the last two years of a Republican term.


Our expert analyst Nathan Threebes concludes - “If there is any indication there could be better times ahead, you should still be cautious. Returns during February and March have shown losses (-0.38% and -0.58% respectively) following a Democratic inauguration. Mr. Obama has a lot of work to do to buck that trend”.

By: Jack Sarkissian

Article Directory: http://www.articledashboard.com

Jack Sarkissian is a senior financial analyst at Ameri-Financial. Visit www.ameri-financial.com/ for news and updates on personal finance that you can not afford to miss. Use our free online tools to establish your financial goals and reach them faster, www.ameri-financial.com/finance-test/personal-finance-test.html.

Please Rate this Article

Click the XML Icon Above to Receive Stock Market Articles Via RSS!

© 2007 Article Dashboard. All Rights Reserved.
Use of our service is protected by our Privacy Policy and Terms of Service

Powered by Article Dashboard