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Sound Advice: October 30, 2024

Stock market gains under Democrats have been nearly double those under Republicans 

Based on the search results provided, here is the relevant information about average annual stock market gains during Democratic administrations over the past 50 years: The data shows that stock market returns have generally been higher under Democratic presidents compared to Republican presidents in recent decades:

  • According to analysis by Liberum, since 1947 the average annual stock market return under Democratic presidents has been 10.8%, compared to 5.6% under Republican presidents.
  • Democratic presidencies:
    • Bill Clinton (1993-2001), the S&P 500 rose 210% over his 8-year tenure, averaging about 26.25% annually.
    • Barack Obama (2009-2017), the S&P 500 increased 189% over 8 years, averaging approximately 23.6% annually.
    • Joe Biden so far (2021-present), the S&P 500 has returned 48% in about 3.5 years, averaging around 13.7% annually.
  • Republican presidencies:
    • Gerald Ford (1974-1977): His presidency saw a recovering market following Nixon's resignation and the end of the Watergate scandal.
    • Ronald Reagan (1981-1989): The stock market experienced significant growth during Reagan's presidency due to tax cuts, deregulation, and a strong economic expansion.
    • George H.W. Bush (1989-1993): The market saw ups and downs, including a recession during his term.
    • George W. Bush (2001-2009): The early years saw growth, but his presidency ended with the financial crisis of 2008, leading to a significant market downturn.

In general, historical data suggests that the stock market has often performed better under Democratic administrations, but this can be attributed to various factors, including the economic conditions at the time each president took office. For example, economic cycles, global events, and the legislative agenda of each administration play significant roles.

Although the exact 50-year average is not provided, these figures indicate that Democratic administrations have seen strong stock market performance over the past several decades, with annual returns often in the 10-25% range. Still, it's important to note that many factors beyond just the president's party affiliation influence stock market performance.

N. Russell Wayne

Weston, CT  06883

 203-895-8877 

www.soundasset.blogspot.com

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