Government Intervention and Stock Returns

Should equity investors be alarmed by the prospect of greater government intervention in the U.S. economy? The following link from Dimensional Fund Advisors’ looks at examples of U.S. intervention in the past and examines the record of stock returns around the world over the last thirty-nine years. The evidence suggests that government intervention is just one factor among many affecting stock returns, and that an above-average degree of intervention is not necessarily associated with below-average returns.