Short legs

As the Germans say, “Politische Börsen haben kurze Beine” — political stock markets have short legs. While investors are closely watching US politics, history offers a useful reminder. Peter Mallouk ’s chart shows that $10,000 invested in the S&;P 500 in 1953 would have grown to over $26 million by October 2026 if invested throughout both Republican and Democratic presidencies. Investing only when one party occupied the White House would have produced a fraction of that wealth. Politics certainly influences markets in the short run. But letting political preferences dictate long-term investment decisions has historically been an expensive mistake. Compounding does not care who occupies the White House.