Virtual Galt Announces Stock Research Findings: More Democrats in the Senate Mean Lower Stock Returns

Saco, ME, December 07, 2008 --(PR.com)-- With the election earlier this week of Saxby Chambliss in Georgia, the composition of the Senate for the 2009-2010 Congress is nearly complete. Coincident with this, James Oaksun, president of Virtual Galt Corporation, a Saco, Maine-based financial consultancy, has completed path-breaking research on stock returns under different political scenarios.

The findings indicated that, for the United States Senate, every 10 additional Democrats resulted in a reduction in real (inflation adjusted) stock returns by about one percent per year.

Overall, Republican control of the Senate was more favorable to stock returns. Annualized real market gains averaged 7.1 percent when Republicans controlled the Senate, and 1.1 percent with Democratic control.

To be comprehensive, Oaksun considered the period 1896 to the present. The Dow Jones Industrial Average – the oldest and best known broad market index – was created in 1896. Oaksun adjusted the Dow values to reflect changes in the underlying price level, to equalize all periods under consideration.

“They say that past experience does not predict future results, and that is true,” Oaksun said. “But there are certain tendencies in the market that are curious and should be considered.”

Virtual Galt Corporation is a Saco, Maine-based financial consultancy. Its founder, James Oaksun, refers to himself as a “gay libertarian financial therapist.” The mission of Virtual Galt is to “Help You Find Freedom.”

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