Published on VOX, CEPR Policy Portal (https://voxeu.org)

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Political cycles and stock returns

Why does the stock market tend to do better under Democrat Presidents than Republican ones? In this video, Pietro Veronesi of the University of Chicago's Booth School of Business explains how the evidence seems to show that when risk aversion is very high, during ‘bad times’, voters are more to elect Democrat candidates, thus improvements in stock market performance are more visible under Democratic presidencies.

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Topics:  Financial markets [4] Politics and economics [5]

Tags:  political cycles [6], Democrats [7], Republicans [8], stock market [9]

Source URL: https://voxeu.org/content/political-cycles-and-stock-returns?qt-quicktabs_cepr_policy_research=0

Links
[1] https://voxeu.org/article/puzzle-high-policy-uncertainty-and-low-market-volatility
[2] https://voxeu.org/article/us-economy-performs-better-under-democratic-presidents-why
[3] https://voxeu.org/article/price-political-uncertainty
[4] https://voxeu.org/content/topics/financial-markets
[5] https://voxeu.org/content/topics/politics-and-economics
[6] https://voxeu.org/taxonomy/term/9141
[7] https://voxeu.org/taxonomy/term/854
[8] https://voxeu.org/taxonomy/term/855
[9] https://voxeu.org/taxonomy/term/928