Part 4/9:
With the upcoming Trump presidency, the expectation is that businesses and investors may face new tax proposals and regulatory changes. Yet, Graham highlights a crucial point: Congress plays a vital role in determining these outcomes. The checks and balances designed within the government imply that the maximization of financial returns will more likely depend on congressional composition than presidential decisions alone.
For instance, the varying performance of market returns during periods of Republican and Democratic leadership demonstrates that market fluctuations are often beyond the direct influence of a sitting president. Even decisions taken by previous administrations can have lingering effects that complicate evaluations of performance tied to party lines.