The S&P 500 index priced-in the pandemic-fueled recession in record time, but it also rallied sharply off the bottom in given hyper-accommodative monetary policy, massive fiscal spending, and anticipation of a strong growth rebound sometime in 2021. In spite of all the challenges 2020 presented, U.S. stocks rose +18.4% for the year.

When it comes to politics, many investors like to assume their political party is better for the stock market, or that a specific balance of power between the president and Congress is ideal for business and the economy. The reality: the stock market has shown virtually no political preference over the years.