An OppenheimerFunds report found the market usually outperforms under a divided government. Meanwhile, a Ned Davis Research study showed the combination of a Republican president and a split Congress has resulted in the Dow falling an average of 6% a year.
Bill Ackman, founder and portfolio manager of Pershing Square Capital Management, says his firm doesn’t make investment decisions based on politics. When asked what he would do Monday at the Bloomberg Invest Global virtual conference if he knew who would win the 2020 election, Ackman responded:
“It really wouldn’t change anything that we’re doing. Our strategy is to buy super high quality, dominant companies that can withstand a pandemic, or a dramatic movement in interest rates, not particularly exposed to the economy. Who the president is is not something that we would make a bet one way or another on the portfolio.”
This article was provided by Bloomberg News.