The red wave that catapulted President-elect Trump to a second term created a green money wave for U.S. investors.
The Dow Jones Industrial Average and the S&P 500 notched fresh record highs Friday and closed out the best week of the year, rising 4.7% and 4.6%, respectively. The Nasdaq Composite hit its 31st record close of 2024, rising 5.7% for the week.
“Contrary to popular belief, under a Republican president, you really don’t want gridlock. You don’t want a split Congress because the best returns since World War II have come under a red wave when the president and both houses of Congress were controlled by the Republicans,” CFRA Chief Investment Strategist Sam Stovall said during an appearance on “Making Money with Charles Payne.”
“In that case, the market was higher by an average of 13% per year, rising 75% of the time. So, the scenario we have right now is the best for a Republican president.”
Republicans took control of the Senate this week. As of Friday evening, Republicans are leading in races to control the House.
Stovall also noted that small cap stocks, which generate most of their revenue/profit domestically, rise an average of 14% annually in a red wave.
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