It’s natural as an investor to look for a connection between who resides in 10 Downing Street and which way stocks will go. But regardless of who wins, decades of returns show that stocks have trended upward.
That’s because shareholders are investing in companies, which focus on serving their customers and growing their businesses, regardless of which government is in charge.
Prime ministers may have an impact on market returns, but so do many other factors such as the actions of foreign leaders, interest rate movements, changing oil prices and technological advances, to name a few.
The bigger picture is that stocks have rewarded disciplined investors over time, regardless of who has won high-profile elections.
For a deeper insight take a look at our investment partner ebi’s blog EBI How politics impacts and doesn’t impact financial markets and in a similar vein, How much impact does the UK Prime Minister have on stocks? from Fund Advisors, Dimensional.
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