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The stock market usually tumbles in the year after a Republican president is sworn in
That's the longest streak for such a narrow trading range in at least 10 years, noted Callie Bost, a financial analyst.
Inauguration (1)
The chart from the data provider Alpha Hat below illustrates that how the benchmark S&P 500 Index has performed in the year after an inauguration since 1950. But as this election's outcome has confirmed, the past is not always a reliable guide for what will happen next.
The median S&P 500 performance for both parties one year after inauguration is 7.6%. It's -7% for Republican presidents, and 14.7% for Democratic presidents.
The so-called Trump rally that took the major indexes to new highs after the election has paused. As DoubleLine Founder Jeff Gundlach said in December, the post-election excitement — this time for President-elect Donald Trump's pro-business agenda — tends to fade into inauguration day and in the few weeks after.
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The Dow has failed to hit the psychologically significant level of 20,000. Meanwhile, in one sign of the tight range stocks are stuck in, the S&P 500 on Thursday closed within less than 1% of where they started — for the 68th day. That's the longest streak for such a narrow trading range in at least 10 years, noted Callie Bost, a financial analyst.
In the long run, however, the S&P 500 tends to go up regardless of who's in office. It gained more than 200% during President Barack Obama's time in office. On March 3, 2009, three days before the index bottomed after the financial crisis, he said "
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