Skip to main content

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

Comments

Popular posts from this blog

Sound Advice: September 21, 2022

The Professional Approach To Stock Selection There are various approaches to stock selection, but the two that predominate are fundamental analysis and technical analysis.  Fundamental analysis is a numbers-based method that evaluates key factors such as income and financial health, including the past, present, and future.  Technical analysis emphasizes movements and formations of stock prices. Fundamental analysis is based on factors that over time have proved to have a meaningful impact on stock price movements.  The optimal picture of corporate profitability is steady growth, both in the past and, prospectively, in the coming years.  Steady growth is rewarded by higher valuations of underlying earning power than those accorded companies with erratic progress. When professionals screen (filter) the data of the broad universe of stocks, they look for companies that move ahead every year, regardless of the prevailing economic conditions.  Although high pas...

Sound Advice: July 26, 2023

Is Day Trading a Good Idea? Day trading can be both exciting and potentially profitable, but it also comes with significant risks and challenges. Whether it's a good idea depends on several factors, including your financial situation, risk tolerance, time commitment, and knowledge of the markets. Here are some considerations to keep in mind: Risk and volatility: Day trading involves buying and selling securities within a short time frame, often within the same day. This exposes you to the inherent volatility and risks of the market. Prices can fluctuate rapidly, and unexpected events can have a significant impact on stock prices, making it challenging to consistently make profits. Time commitment: Day trading requires a substantial time commitment. It involves closely monitoring market movements, conducting research, and executing trades. It can be stressful and demanding, as you need to be actively engaged in the market during t...

Sound Advice: May 31, 2023

High Yields, Yes!  But There Are Risks Now that failure to get much done in Washington seems to be the bottom line for lots of talk, but little action, it’s hard not to wonder whether we’re missing something.  Yes, the Federal Reserve Board has aggressively raised interest rates in the hope of putting a damper on excessively high inflation, but one would think that there might be some good news as a result of these efforts. The hoped-for result is that inflation is indeed moderating.  Also of importance, though, is the sharp improvement in interest rates on fixed-income investments, usually a.k.a. bonds.  For much of the past decade or more, interest rates have languished at or near historical lows, which created considerable shortfalls for folks living on fixed incomes. Thanks to the Fed’s hikes, the returns on bonds and the like are beginning to be of interest.  But . . . and that’s a big but . . . there are risks involved. For short-term investing at ...