Stock Market up 68% under Obama
For all the Republican complaining about his anti-business policies, President Barack Obama’s first term in office has been good for the stock market.
Since Obama was inaugurated in January 2009, the Dow Jones industrial average has gained 67.9%.
Jeff Sommer of The New York Times characterized the increase as “an extremely strong performance—the fifth best for an equivalent period among all American presidents since 1900.”
“What I find most ironic about these numbers is that one of Obama’s weaknesses is said to be his economic record,” Paul T. Hickey, cofounder of Bespoke Investment Group, told the newspaper. “While the stock market isn’t a complete reflection of the economy, it is an important indicator, and the stock market is one of the great things the president has working in his favor. But it’s a sensitive subject. With Wall Street so despised by the average American right now, it’s probably something he doesn’t want to be too quick to trumpet. But facts are facts.”
Bespoke noted on its website that the Dow recently concluded 81 straight days without a 1%+ decline. The streak was the longest since the 94-day one that occurred during the Bush administration, from July through November 2006.
Actually, it is an American tradition for the stock market to do better with a Democrat in the White House than with a Republican. A study published at buysellshort.net demonstrated that between 1897 and 2008 the Dow went up 7,863 points under Democratic presidents, but only 1,032 points under Republicans. And an examination earlier this year by Bloomberg showed that a hypothetical investment of $1,000 in Dow Jones stocks in 1961, the year John F. Kennedy was inaugurated as president, and kept in stocks only when Democrats occupied the White House, would be worth $7,550 today. On the other hand, $1,000 invested the same way in 1973, the year the next Republican, Richard Nixon, was inaugurated, would only have been worth $2,716 on the day George W. Bush vacated the Oval Office.
-Noel Brinkerhoff, David Wallechinsky
To Learn More:
Wall St. May Not Cheer, but Obama’s Been Good for Stocks (by Jeff Sommer, New York Times)
Streak Ends at 81 Trading Days (Bespoke Investment Group)
Stock Market Suggests Victory For Obama (by Rocky White, Forbes)
Stock Market Does Better with Democratic Presidents (by David Wallechinsky, AllGov)
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