Understanding the impact elections have historically had on markets can serve as Pepto Bismol for investors with bad gut feelings, however.
Looking at 70 years of returns, a Democrat in the White House has been better for investors. Since 1953, $1,000 (£789.79) invested when a Democrat is president, sold to cash when a Republican takes office, then reinvested when a Democrat returns turns into $62,000. The opposite strategy – only investing when a Republican sits in the Oval Office – only grows to $27,000.