Editor's note: The following analysis from Bespoke Investment Group was originally distributed on Wednesday. The report is published here with the firm's permission.
With Republicans set to take control of the Oval Office, Senate and House come January, we wanted to provide an update and a little more detail to our B.I.G. Tips report from yesterday highlighting market performance under different political compositions in Washington.
As shown in the table below, there have been thirteen prior sessions of Congress where Republicans had full control of Washington (RRR) as they will have in January. Overall, equity market returns have been consistently positive in the two-year sessions as the Dow has averaged a gain of 18.72 percent (median: 16.26 percent) with positive returns ten out of thirteen times.