Wall Street has done best under Democrat presidents, with an average return of 14.6 per cent per annum since 1927.

But when the results started to emerge, fund managers realised that the “there is no alternative trade” would once again be the key driver for markets and dived back into equities, Mr Curtayne said.
“With Mr Biden getting in, and if the Democrats can’t secure the Senate, then it paints the picture of a little less fiscal stimulus,” he said.
I really think that the markets are poised for a rally.
Jun Bei Liu, portfolio manager at Tribeca Investment Partners
In such a situation, the economy would probably require more monetary stimulus, Mr Curtayne said. “So that tilts the markets back in favour of beneficiaries of lower rates growth stocks and defensive stocks.”
The Federal Reserve has already signalled that it is “considering options for adjusting its quantitative easing program, in a strong hint that it is likely to provide more stimulus, given the risks flowing from the latest rebound in coronavirus cases,” said Shane Oliver, head of investment strategy at AMP Capital.
“US shares typically rally after close elections,” he said, adding that November, December and January were stronger seasonal months for the sharemarket performance.
Wall Street has done best under Democrat presidents, with an average return of 14.6 per cent per annum since 1927 compared with an average return under Republican presidents of 9.8 per cent per annum, Dr Oliver said.
“However, the best average result has actually occurred when there has been a Democrat president and Republican control of the House, the Senate or both. This has seen an average return of 16.4 per cent per annum.”
The Federal Reserve is likely to keep rates very low, said Jun Bei Liu, portfolio manager at Tribeca Investment Partners. “So there will be a lot of support on the monetary front and fiscal support is coming. It might not be as large as expected but it will still be reasonably stimulatory.
“If you combine all that policy stability, low interest rates, an economy that is recovering it actually paints a really positive outlook for the equity markets over the next year or so,” she said.
“I really think that the markets are poised for a rally.”
US job numbers were positive on Friday, and the economy added 638,000 jobs in October. That figure beat economists’ forecasts and the unemployment rate fell to 6.9 per cent.
One of the biggest risks for the markets is that COVID-19 daily cases continue to reach record numbers in the US. President-elect Biden confirmed on Sunday that he would appoint an expert team to advise him on the coronavirus crisis.
“On Monday, I will name a group of leading scientists and experts as transition advisers to help take the Biden-Harris COVID plan and convert an action blueprint that will start on January 21 of 2021,” he said.
Mr Trump was another risk factor, said Mr Ashworth.
“With his pride damaged by the election loss and amid his baseless claims of election fraud, we suspect that Trump will pursue something of a scorched earth strategy between now and inauguration day on the 20th January.”
The economist suggested that Mr Trump could issue a “flurry of increasingly dramatic executive orders, designed to shore up his MAGA [Make America Great Again] base”.
He said there had been little disorder to date, which may explain why market volatility has been low. “But, egged on by Trump and his family, that could also still change over the next month or two.”
And a Biden administration could still pursue tighter regulation of the financial and energy sectors “simply by restoring the teeth of the regulatory agencies for those industries,” Mr Ashworth said.
He said Mr Biden could also launch anti-trust lawsuits against big technology companies, which would not need Congress approval.