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.
Hmm... May that be because democrats get elected at the bottom of the business cycle (when times are tough)? Then they enjoy the boom that was going to come anyways...
Republicans were elected at the bottom of the the business cycle as well..(remember Tech Bust) and they led the country further downward....
How is that? - did the 'regular' time intervals in the chart make you think something cyclical was to blame? Reaganomics did buck the GOP trend, but now reanalyze that mess... The rest of us will notice that the irregularity of the intervals proves Democratic economic policies do more for our Nation and all it's people.
oh, to be such a shallow thinker & to believe in a one variable model...
Stock market in a sense is a voting mechanism. When the 99% sense probabilty of gain they put their money in the market. With the republican they are so pre-occupied with their trickle down theory inevitably benefiting the just the 1%. Their economic theory is idiotic or the whole party is populated by idiots.
Stock market in a sense is a voting mechanism. When the 99% sense probabilty of gain they put their money in the market. With the republican they are so pre-occupied with their trickle down theory inevitably benefiting the just the 1%. Their economic theory is idiotic or the whole party is populated by idiots.
Counter-intuitive that heavy taxation, excessive regulatory burdens, a large government bureacracy and give-away programs are the key to a strong stock market.
Republican policies support supply more, whereas Dem policies increase demand. Virtually every down cycle we have, supply outweighs demand. That is why giving more tax beaks to companies when they already are under capacity for the current demand does not help anything while it increases the deficits.
Republican policies support supply more, whereas Dem policies increase demand. Virtually every down cycle we have, supply outweighs demand. That is why giving more tax beaks to companies when they already are under capacity for the current demand does not help anything while it increases the deficits.
I don't agree. BTW I'm neither a dem or republican.
The graph should incorporate a policy lag... such as a legislation fully affects the markets after some time.
During the final Clinton years, that was the time they abolished the Glass-Steagall act that led to the preventable and idiotic bubble of 2007.
Therefore, Clinton's administration should be penalized. However, the house was ruled by republicans with some dems spearheading the removal of the said act like Obama's current point man larry summers.
Ergo, it is the quality of the people in government overall at a point in time not just some clear cut separation by either being a dem or republican.
America was lucky that the greatest generation lived during WWII. Good ethics and personal values is the foundation of a great nation. Unfortunately, America has now evolved to self-absorbed narcissists but that's a topic for a different day.
Overall, republicans are worse off as they are pro big business (i have nothing personally against them). By which, big businesses are myopic as they just focus on a couple of quarters' earnings in the future AND take off with golden parachute packages once things get sour. Remember Angelo Mozilo.
Hopefully, things get better as more companies tie bonuses to long term stock performance of their employer.
Cheers
A free market with little regulation takes a long time to regulate its-self, time that people aren't willing to wait, so they elect a super regulatory president who is a member of the Democratic party to regulate their businesses to see results now. Between freedom and money I'd rather have freedom, but that's just me.
Interesting- although not necessarily party related.
Reagan and Daddy Bush had a much better spell than Carter and Kennedy Johnson.
Clinton presided over a global boom. Baby Bush presided over a global recession- of which Obama was elected immediately afterwards.
It is an interesting chart- but nothing conclusive.
Led by Bloomberg Businessweek's Washington correspondent, "Joshua Green on Politics" is a blog devoted to national politics and public policy issues, from Congress to the 2012 Presidential campaign trail. A special focus will be the intersection of business and politics. Follow the author on Twitter (@JoshuaGreen). To book for television or radio appearances, call Patti Straus, 212-617-3279, or e-mail pstraus@bloomberg.net.
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