Is Gridlock Good?

Riepe, Mark W.
August 2004
Journal of Financial Planning;Aug2004, Vol. 17 Issue 8, p20
Academic Journal
This article presents the author's opinion on the impact of U.S. politics on the stock market. To assess the impact of elections on the market, it is more helpful to know who occupies the government and who controls the Congress. I analyzed U.S. administrations between 1953 and 2004 and classified each year as either a gridlock or non-gridlock year. Non-gridlock years are those in which either the Democrats or Republicans control the presidency and both chambers of Congress. All others are deemed to be gridlock years, I then computed the total rate of return on the S&P 500 Index during those years to see if there was any difference.


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