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10-10-2006, 12:00 PM
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MarketWatch
Dems have already seized control in stock returns, study says
Tuesday October 10, 12:01 am ET
By Jonathan Burton
Companies that favor Democrats produce outsize returns, study says
SAN FRANCISCO (MarketWatch) -- Democrats might not wrest control of Congress in next month's U.S. elections, but new research suggests the current minority party has already mastered the stock market.
Blue Investment Management LLC, a New York-based investment adviser, says the stocks of U.S. companies that contribute more money to Democrats than to Republicans have significantly outperformed both the Standard & Poor's 500 Index (TSX VENTURE:SPX.V) and shares of Republican-leaning companies over the past five years.
According to the firm's research paper, "The Blue Factor," an index of 76 companies in the S&P 500 meeting certain ethical criteria and favoring Democrats -- "blue" stocks -- would have topped a group of about 380 Republican "red" stocks by 15.6 percentage points annualized over the five years through August.
In addition, the large-capitalization blue companies did 13.1 percentage points better than their S&P benchmark, the study said. Moreover, blue S&P companies achieved this result without any representation in the high-octane energy sector.
Even after omitting blue companies with market values above $25 billion, including Apple Computer Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOG) and Costco Wholesale Corp. (NASDAQ:COST), the remaining blue stocks would still have beaten the S&P 500.
A $100 investment five years ago in the large-cap blue companies would have grown to around $239, the paper noted. An equivalent investment in large-cap "red" companies, such as ExxonMobil Corp. (NYSE:XOM) and Dell Inc. (NASDAQ:DELL), would be worth around $118.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/cbsm/061010/a88dedda1279475c903d85ef3b1324d9.html?.v=1)
MarketWatch
Dems have already seized control in stock returns, study says
Tuesday October 10, 12:01 am ET
By Jonathan Burton
Companies that favor Democrats produce outsize returns, study says
SAN FRANCISCO (MarketWatch) -- Democrats might not wrest control of Congress in next month's U.S. elections, but new research suggests the current minority party has already mastered the stock market.
Blue Investment Management LLC, a New York-based investment adviser, says the stocks of U.S. companies that contribute more money to Democrats than to Republicans have significantly outperformed both the Standard & Poor's 500 Index (TSX VENTURE:SPX.V) and shares of Republican-leaning companies over the past five years.
According to the firm's research paper, "The Blue Factor," an index of 76 companies in the S&P 500 meeting certain ethical criteria and favoring Democrats -- "blue" stocks -- would have topped a group of about 380 Republican "red" stocks by 15.6 percentage points annualized over the five years through August.
In addition, the large-capitalization blue companies did 13.1 percentage points better than their S&P benchmark, the study said. Moreover, blue S&P companies achieved this result without any representation in the high-octane energy sector.
Even after omitting blue companies with market values above $25 billion, including Apple Computer Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOG) and Costco Wholesale Corp. (NASDAQ:COST), the remaining blue stocks would still have beaten the S&P 500.
A $100 investment five years ago in the large-cap blue companies would have grown to around $239, the paper noted. An equivalent investment in large-cap "red" companies, such as ExxonMobil Corp. (NYSE:XOM) and Dell Inc. (NASDAQ:DELL), would be worth around $118.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/cbsm/061010/a88dedda1279475c903d85ef3b1324d9.html?.v=1)