Skip to comments.FORTUNE: The S&P 500 Is at an All Time High—But Markets Still Performed Far Better Under Obama
Posted on 11/04/2019 8:32:14 AM PST by SeekAndFind
Before the Fed lowered its target interest rate range on Wednesday, Donald Trump was already on Twitter, touching on two of his favorite topics: how the Fed doesn't lower interest rates enough and that the stock market's performance is thanks to him and his Republican pals.
The connection between a president and equity markets isn't straightforward. Many factorsthe general health of the economy, investors sentiment, interest rates, financial stimulus, and global business conditions, for exampleaffect how stocks perform. But presidents also aren't unimportant.
"Policies may or may not be helpful for economic growth," says Kenneth Orr, CEO of investment research firm and value investment fund manager KORR Acquisitions Group. "Policies are led by the President and his Administration, but Congress must pass laws and budgets to affect those policies."
And so, as Fortune did in early June, we decided to take a look at how the markets performed during the Administrations of Barack Obama and Trump. We downloaded historical information on the Dow, S&P 500, Nasdaq, and Russell 2000 indexes from Yahoo Finance. Then we compared the same periods for both presidents: from inauguration on January 20 to Oct. 31 in their third year of office.
Because the market had already run up a long way before Trump was elected, the absolute numbers would be misleading. Instead, Fortune compared the performance under each president to his initial inauguration day to get an accurate comparison of growth under each.
Below are graphs and analysis for each of the sectors. For those who want the quick answer, market growth was considerably stronger under Obama, but there is an important caveat. The financial crash that occurred immediately before Obama took office left markets reeling, so there was a lot of room for them to move. Also, the massive financial stimulus enabled by Congress
(Excerpt) Read more at fortune.com ...
Erik misses Helicopter Ben.
The gigantic spike at the end of Obama’s term had absolutely nothing to do with Obama. That was all Trump and to pretend otherwise is a out and out lie
More garbage #FakeNews from garbage Media boy Erik Sherman.
How to Lie with Statistics 101.
“to his initial inauguration day”
This throws the big Trump election rally into the Obama camp.
Yes amazing, when the Fed manipulates the Market with Quantitative easing, how you can manufacture imaginary on paper wealth for the richest one 1% but screw everyone else
I will take real middle class economic growth over market manipulation for political reasons to feed billionaires
Thanks to Trump, Median Household Income at Highest Level Ever
What happens when you remove the artificial gains due to QE 1 and 2?
The usual garbage "news" and lies from the Garbage Media.
I saw this the other day. I know that all investors, all people really, look back to those golden days of the Obama administration and economy. Everyone who wanted a job, had a job. Everyone got free medical coverage under ObamaCareour nation was respected/feared around the world. It was a Golden Age to tell our grandkids about. (Do I really need to add a sarcasm note?)
I imagine Wharton would prefer the steady climb as per the trump model over the wacky and falsely propped up corruption-fueled Obama model which tanks at the end as he gives up his concern
Obammy was lazy, watched basketball all day... he didn’t go sh*t for the economy except destroy it.
BS statistic. Percentage increase. S&P was on the floor when Onongo took office in 08 so of course he could get a better percentage increase. Just a rubbish analysis from a hack who actually knows better.
Completely ridiculous. Scale is essential for accurate visualization of a graph. Obama is 8 years, Trump is 3 or less.
Did Michael Mann do this graph?
For Obama, they should not start with his inauguration day. Instead, they should start counting at the point before where he and his pushed the stimulus disaster upon us. That was the point where things started downhill because of him.
What misleading graphs. Obama started at the lows due to a recession in 2008 and 2009. There was no where to go but up.
Better to compare the Bushes, Reagan, Carter etc.
Obama does not deserve any credit at all.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.