Diary

Democrats + S&P = Not good.

Some investment advice to those who still have some spare change sitting around that wasn’t donated to the One. Look at control of the Senate since 1990 and the percent change (return) on the S&P during that time.

1990 D -3.11
1991 D 30.47
1992 D 7.62
1993 D 10.08
1994 D 1.32
1995 R 37.58
1996 R 22.96
1997 R 33.36
1998 R 28.57
1999 R 21.05
2000 R -9.11
2001 D -11.88
2002 D -22.10
2003 R 28.69
2004 R 10.87
2005 R 4.89
2006 R 15.80
2007 D 5.49
2008 D -37.00

Average return on S&P during Dem majority in the Senate – -2.12%
Average return on S&P during Repub majority in the Senate – 19.466%

The President primarily hurts the economy or leaves it alone. The power to really impact the economy lies with the most powerful body of Congress – the Senate. They have the power in how much to take out of the market through taxes, and how much to crowd out the market through spending.

Follow the senate, and you can make money.

If you would have invested $10,000 in the S&P when ever the Republicans were in the Senate over the last roughly 20 years, and parked the money in a 4% CD when Democrats were in charge you would have $75,635.45 right now and it would be parked in a safe CD.

If you did the reverse but bet on Democrats helping the stock market more, you would have $10,246.69 and frankly would not be looking good going into 2009.

Be safe out there.