Evidence has shown that the stock market fares better when the Democrats rule the country. This evidence is in the form of facts and figures collected by finance analysts. Many Americans think that the economy is always better under Republican rule. However, the reality is different. While it’s true that each presidency has faced its fair share of recession, inflation, and bad economy. Yet, some presidents handled it better than others and made the economy better again. Some data support this claim ever since the first president came into power.

There were many stock investments during democratic regimes, while the reverse is the case during Republican regimes.

Nevertheless, financial experts don’t know why a stock investment does well under Democrats’ rule.

Stock Market During Democrats VS Republican Regimes

For so many decades, Democrats and Republicans have ruled, respectively. When Democrats ruled, the rise in the stock market was up to ten percent. On the other hand, when Republicans ruled, the stock market rose to 4.8 percent. This is why investors are always concerned when it’s time to elect a new president. They want a president that can stabilize the economy and boost the stock market.

It is understandable they’ll feel this way given the record of the last Republican president, Trump. Trump enforced huge corporate taxes on organizations and this negatively affected the stock market. With a Democrat in power, the economy would be stimulated.

Contrarily, few financial experts analyzed that some of Wall Street’s speculations about the stock market and politics are wrong. They argued that the stock market has nothing to do with the presidency. It’s more about those who do business and the market trend. Yet, facts have revealed that a stable economy can bring about a booming stock market. If a country has a good president that governs well, the economy will be stable. Therefore, there is a sort of relationship between the stock market and politics. This is evidenced during the regimes of presidents like George Bush, Johnson, Nixon, and Reagan.

This has prompted Forbes to do more studies on the relationship between politics and the stock market. It made a list of each presidential regime and the rise or fall of stocks during those times. Forbes also listed the number of dividends received by investors during those regimes.

An Analysis of the Relationship Between the Stock Market and the Presidency

Forbes collected its data from a research bureau and made a detailed analysis of its findings. Each presidency faced at least a recession and an expansion during its tenure.

The likes of President Clinton and Co, made impressive economic progress while in power.

Below is an example of some democrats that were in office when the stock market was good.

Among them all, the best president with the most stable and successful economy is Clinton, J. His tenure brought enormous positive changes in the stock market. His tenure saw an increase in the stock market dividend that can be estimated to be more than 200 percent. While the regime that has the worst economy and stock market is Bush, W. The stock market and economy during Bush’s regime were in the negative.

One of the things that might have made Bush’s regime worse is the lack of certainty during his tenure. This had an impact on the stock market. This is further illustrated during Eisenhower’s tenure as an American president. The stock market plummeted so much within 24hrs when the president collapsed. Another example was the assassination attempt on John Kennedy, which took his life. The American stock market fell in the aftermath. However, the stocks rose again during these two tenures when people were reassured about the fate of the country.

An example of a Democrat President with a successful economy

Democrat Obama’s appointment to the presidency was seen as a ray of hope by many Americans. Before his appointment, the economy was in recession and the stock market had fallen hard.

His predecessor also encountered recession while in power. At the end of Obama’s predecessor’s tenure, the newly elected president reduced interest rates. He also injected funds into the economy to make it stable again. Before his first year ran out, Obama had taken the United States out of its financial crisis. His tenure spanned nearly a decade, and the stock market investors got high dividends.

He encouraged innovative tech and startups, which created job opportunities and boosted the economy. Obama further reduced interests on loans and taxes. Due to all these, many people invested in tech firms and cashed out.

Conclusion

From the above write-up, it’s clear that there is a distinct relationship between the stock market and politics. It is a well-known that people are reluctant to invest if something drastic happens in a country. Those who have invested panic and sell their stocks in a hurry. This and many more contributed to the fall of the stock market after Eisenhower collapsed and Kennedy died.