The data say unequivocally YES!
This post is in response to a new commenter, two dogs, here at Progressive Eruptions who said I was wrong when I made the claim that the stock market historically does better under the Democrats than it does under Republicans. Here are the facts:
Tuesday, November 4, 2008
One of the topics that seems to be all over the news is what Presidency will be best for the stock markets.
At fist sight, one would tend to think that the markets would react more positively to a Republican victory:
Generally big money and big businesses in the market tends to be Republican
Republicans are all about capital accumulation and low taxes
Republicans tend to favor growth through economic policy, free markets
But it appears that the above is not true… apart from the fact that there is a trend for a more pronounced bounce after a Republican victory, history shows us that the Democrats are better for the markets.
The New York Times has published a really interesting chart/study showing that under a Democratic Presidency the average yearly return is better and that a $10,000 investment in the S&P in 1929 would have grown to $11,733 if invested under Republican presidents only and to $300,671 at a compound rate of 8.9% under Democratic Presidents: