Saturday, September 8, 2012

Since WWII, Stocks Have Done Much Better Under Democrats Overall

Doh!
The following table is compiled from data available here.

The results are annualized rates of return, dividends fully reinvested, adjusted for inflation. In other words, these are the real annual rates of return of the Standard and Poor's 500 Index.

Dates for each presidency are marked from November 1 of the year of election to November 1 in the year losing or leaving office. Truman's service before 1948 is excluded since it overlaps the war when he took over from FDR, who died in office. Kennedy's service is combined with LBJ's because Kennedy was assassinated in his third year. Ford's service is combined with Nixon's because Ford never was elected but finished the second term of Nixon, who resigned. Obama's performance is only to July 2012, the last available data.

2008--2012 Barack Obama        12.66 percent
2000--2008 Bush The Younger  -6.12 percent
1992--2000 Bill Clinton             15.27 percent
1988--1992 Bush The Elder      10.76 percent
1980--1988 Ronald Reagan        8.98 percent
1976--1980 Jimmy Carter           2.60 percent
1968--1976 Nixon/Ford             -3.09 percent
1960--1968 Kennedy/LBJ          9.40 percent
1952--1960 Eisenhower           13.54 percent
1948--1952 Harry S. Truman   17.84 percent

Real gains per annum under Democrats have averaged 2.06 percent for their almost 28 years in control of the executive. Real gains per annum under Republicans just .67 percent for their 36 years in control. How the gains were achieved is another matter, but clearly the Democrats have done three times better than the Republicans.