“Buy these X stocks because Y will be elected.”

Using the KBW Regional Banking Index (KRX), there was a 20% gain in Q4 2016 on the theory of Trump being good for business in general and a sense of less regulation and less FTC interference in the obvious need for industry consolidation.

In Q4 2020, the KRX rose 30% after a Biden victory.

So..what are we to conclude?

In a related note, per Barron’s, bank stocks haven’t performed well under Biden or Trump. The SPDR S&P Regional Banking ETF returned 17% under Trump, slightly below the 80% S+P return The ETF has returned 33% under Biden to date, vs S&P 500’s 60%.