The S&P 500 enjoyed a compound annual growth rate of 12.1% from Trump’s surprise election in November 2016 through Biden’s 2020 victory, according to CFRA.
“The Trump market was so strong because of a combination of very low inflation, very low interest rates and tax cuts,” said Stovall.
The S&P 500’s growth rate under Democrats is 10% compared with 6.7% under Republicans, according to CFRA.
In those six years since 1945, where such a dynamic has been in place, the S&P 500 has enjoyed a sizzling growth rate of 16.8%.
In fact, the market has generally performed better during times of higher, not lower, tax rates across changes in all three categories, BMO found.
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