Yesterday, the Dow Jones Industrial Average
briefly peaked above 13,000 before dipping at the close. Like all Dow milestones,
this one touched off the usual celebration. It may be no coincidence that the
market is rising under a Democratic president. In a Bloomberg Government article out this morning, Bob Drummond examines the historical record and finds that
the stock market (the S&P 500, in this case) performs much,
much better under Democrats than Republicans. The story is subscription-only
for now, but I’m allowed to post the accompanying chart, above. How big a
difference does the president’s party make on investors? As Drummond shows,
$1,000 invested in a hypothetical S&P 500 tracking fund beginning when JFK was president and
measured only during subsequent Democratic presidencies would have yielded
$10,920 by the time the market closed yesterday. Alternatively, $1,000 invested
when Richard Nixon was president and measured only during Republican
presidencies would have yielded $2,087 on the last day of George W. Bush’s
presidency.
I found this article from Bloomberg Businessweek interesting and though I'm pass it along.
I also wonder how the Republican party which constantly touts itself as the party of prosperity interprets such data.
It's interesting in light of the lines for the second Bush and Clinton to see the affect of Democrats vs Republicans controlling Congress.
ReplyDeleteFor Bush you have the clear dent of the instance of 9/11. Then things went up... until the Dems took the House, and then the wheels came off.
Things really took off under Clinton once the GOP took Congress in 1994, and the deficits also went way down.
It's not surprising what has happened to Wall Street investments under Obama, since under him, massive multi billion dollar handouts to the biggest corporation on Wall Street is the order of the day. It's a whole new ballgame now.
That is an investment secret that has worked well for me.
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