With less than twenty days until mid-term elections, it's beginning to look more and more like the Democratic Party will take control of at least one Chamber of Congress. The chart below is from a report we sent out to subscribers in July which summarizes the political parties controlling office during each session of Congress since 1962. Below that, we also summarized how the economy and market (including sectors) performed during each session of Congress.
One of the more noteworthy aspects of the chart given the upcoming election is that divided executive and legislative branches have generally been good for the stock market. In fact, in the thirteen instances where the same party did not control both houses of Congress and the Presidency, the market has risen in all but two periods for an average gain of 23%, while in the ten periods where the same party controlled all three branches, the market has risen in seven periods for an average gain of only 11.3%.