Is gridlock in Washington actually good for stocks? Here’s what historical market data says.

Historical market data shows no consistent performance advantage for stocks during periods of divided government in Washington. A study of market returns across administrations with unified versus divided control of Congress and the presidency found no statistically significant difference in stock performance between the two conditions. Researchers examining decades of market data found that factors including interest rates, corporate earnings, and inflation had greater correlation with stock returns than the degree of legislative gridlock.

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