Which Political Party is Better for the Stock Market?

While the General Election polls suggest a different political result every week, historical data gives us a clearer view on what the implications are for the stock market

Emma Wall 30 April, 2015 | 2:47PM
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Conservative governments are better for the stock market – at least in the 12 months following a Tory win, according to historical data.

Including the 1945 vote, there have been 17 General Elections in post-war Britain. The Conservative Party has won a General Election nine times since 1945 – and eight instances the UK stock market rose in the following year, with an average annual return of 10.8%.

This favourably compares the eight years the Labour Party has won; as in only three cases has the stock market risen following their election to government. In 12 months following a Labour win the average stock market annual return is negative at -5.4%.

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Emma Wall  is former Senior International Editor for Morningstar

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