Where politics and markets meet

The chart shows returns over the last 10 years and 70 years based on whether investments were made under only a Democrat president; only a Republican president; or stayed invested the entire time.

Since 2024 is an election year and campaigns are ramping up, I thought it would be timely to speak about the intersection of politics and markets. Before I get into past returns under different political parties, I believe it’s important to understand what actually drives stock market returns over time. 

Those of you who regularly read my articles should know by now I follow closely the teachings of Warren Buffett and the late Charlie Munger. Buffett has used his annual letter to teach his mentality on markets and investing. He also speaks regularly of his teacher, Benjamin Graham, who is famous for saying, “In the short run the stock market is a voting machine, but in the long run it is a weighing machine.”