Politics And The Financial Markets
Let's do an excercise together, shall we? Lets take the Dow Jones' Industrial Average and find out how each party did during their presidential term since 1900. By doing so we can see if we can gain any insight into the politics of the markets and presidential party terms.
DJIA Performance Through Modern Day Presidential Terms
Analysis of Presidential Terms In Financial Markets
What can we gather from this?
- The Democrats never had a losing DJIA performance
- The best percentage advances came during Calvin Coolridge (Republican) and Bill Clinton's (Democrat) administration
- The worst percentage declines came during Herbert Hoover (Republican) and Richard Nixon (Republican) administrations
- The average DJIA percentage return for 7 Democrats was 81% per term
- The average DJIA percentage return for 11 Republican terms was 46%
- The total DJIA percentage return for 7 Democrats terms was 568%
- The total DJIA percentage return for 11 Republican terms was 502%
- The average return per each presidential term was 59%
Democrats return better stock market gains than Republican adminstrations.
About Kerry Kobashi
Kerry is the founder of KerryOnWorld. He lives in Silicon Valley.