The two major political parties are nearly at parity in the U.S. Congress, but there’s one area where they aren’t close at all. Democrats crushed Republicans in average stock market returns in 2023.
Last year was a good one for most investors, with the S&P 500 jumping over 24%. However, Democratic members of Congress handily beat that level with an average return of nearly 31.2%. Rep. Brian Higgins (D-N.Y.) was the biggest winner among congressional stock traders with a gain of 238.9%.
On the other hand, the average 2023 return for Republican members of Congress was just under 18%. While some Republicans saw significant gains, the GOP delegation on Capitol Hill significantly underperformed the market.
The secret to Democrats’ success lies in their investment choices. Democrats favored tech stocks like Nvidia, Amazon, and Tesla, all of which saw impressive gains in 2023. Nvidia, in particular, benefited from the AI boom and its GPUs remain the gold standard for powering generative AI applications.
While past performance is not indicative of future results, investing in technology could pay off handsomely over the long run. Regardless of political affiliation, tech stocks may continue to deliver exceptional returns in the years to come.
It’s important to note that investing sentiment and geopolitical events can impact stock performance, so it’s essential to do thorough research before making investment decisions.
