Surprise! Having Dems In The White House Is Actually Best For The Stock Market

The popular opinion is that the Republican party is more friendly to Wall Street and business than the Democratic Party. Perhaps. But the stock market has performed better with Democrats in the White House.

My study goes back to 1917.

Since 1917 there have been 12 presidential terms when a Republican was in the White House, and 12 when a Democrat was president. I cheated a bit. To keep the count even at 12 terms each I had to count the two-years President Obama has been in office as a full four-year term.

Interestingly, the market was up at the end of 9 of the 12 Republican presidential terms, and down in three. And it was also up for 9 of the 12 Democratic presidential terms, and down in three.

But then there are the differences.

The market was up an average of only 52.7% in the 9 Republican presidential terms in which the market was up, but up an average of 59.1% in the 9 Democratic terms in which it was up.

And the market was down an average of 32.9% in the 3 Republican presidential terms in which the market was down, but down an average of only 18.7% in the 3 Democratic presidential terms in which it was down.

Putting it together, the market was up an average of 39.6% across the 12 four-year Democratic terms, and up an average of only 31.3% across the 12 four-year Republican terms.

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