Trump vs Biden’s Legacy: The past few weeks has been a whirlwind of unprecedented events in American politics. From the Presidential debate between Biden and Trump on 27 Jun, to the shocking assassination attempt on Trump on 13 Jul, and now Biden's unexpected withdrawal from the race on 21 Jul, the political landscape has changed dramatically.
The relationship between political leadership and stock market performance has long been a subject of interest for investors. Since the S&P 500’s inception in 1957, the index has delivered an average annual return of c.8.5%. Closer examination reveals that the S&P 500 achieves a higher return under a Democratic presidency with an average of c.11.4% annual return vs c.6.0% annual return from a Republican presidency.
We believe that this election will see the same trend for the Technology space, particularly in Big Tech.
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