The stock market generally does better when Republicans are in power, according to research by Crandall, Pierce & Co., an investment research firm in Libertyville, Ill.
The firm looked at the stock market results from 1945 through 2003, using the price appreciation of the Dow Jones industrial average as a proxy for the market. The upshot: the stock market did best when Republicans held the presidency and both houses of Congress, returning average annual 21.84%. When Democrats held the presidency and both houses, the return averaged 6.86% a year.
One notable exception was the recent past. The S&P 500, based on total return, soared after President Clinton's 1996 re-election, while it tanked after George W. Bush was elected president in 2000, according to the firm's research.