In the 1980s, a Republican president, a Democrat Speaker of the House and an inflation-fighting Federal Reserve chairman powered a stock-market rally.
A strategist draws a 1980s parallel to argue bipartisanship could power a ‘bull stampede’
In short
Historical market surges demonstrate that divided government can successfully foster economic expansion under the right conditions. During the 1980s, a major stock rally was supported by a Republican president collaborating with a Democratic Speaker of the House. This political dynamic worked in tandem with an inflation-fighting Federal Reserve chairman to power equities higher. Strategists believe a similar combination of leadership could potentially trigger another major rally today.
Key points
- Historical parallels show divided government can successfully fuel substantial stock mark…: Historical parallels show divided government can successfully fuel substantial stock market gains.
- Cross-party collaboration between the White House and Congress helped drive past economic…: Cross-party collaboration between the White House and Congress helped drive past economic surges.
- Federal Reserve policies targeting inflation played a critical role alongside 1980s polit…: Federal Reserve policies targeting inflation played a critical role alongside 1980s political leadership.