Stocks don’t care who is America's president

People often assume that the traditionally business-friendly Republicans would be better for equities than the Democrats. Yet, that's not necessarily the case.

Finance pundits have started assessing the potential impact of presidential candidates on the American stockmarket. People often assume that the traditionally business-friendly Republicans would be better for equities than the Democrats. Yet the Dow Jones index gained an average of 82.7% under Democratic presidents between 1901 and 2014, compared to 44.8% under Republicans, says Myles Udland on

Still, there is far less to this than meetsthe eye. Stocks usually go up anywayand correlation is hardly causation."The broader economy is part of a massive set of forces, much of which is typically beyond the White House's ability to deal with," says Barry Ritholtz on

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Occasionally, presidents add to tailwinds Reagan's tax-cutting came on top of the Federal Reserve's defeat of inflation in the early 1980s, for instance but they don't usually create them. The Republicans were unlucky to have presided over the Depression, while President Obama is fortunate to have such a supportive central bank. When the talk turns to presidents and stockmarkets, tune out.




How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019

Why Wall Street has got the US economy wrong again

The hiring slowdown does not signal recession for the US economy. Growth is just moving down a gear, says Brian Pellegrini.
25 Oct 2019

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019

Most Popular


What does the coronavirus crisis mean for UK house prices?

With the whole country in lockdown, the UK property market is closed for business. John Stepek looks at what that means for UK house prices, housebuil…
27 Mar 2020
EU Economy

The European Central Bank throws away the rulebook to bail out Italy

The ECB has removed all constraints on asset purchases and will now buy “whatever it takes” to tackle the coronavirus. John Stepek explains what it me…
26 Mar 2020

Gold is hard to find right now – so should you be buying?

With demand through the roof and the physical metal hard to find, it's not the best time to buy gold. But right now, says Dominic Frisby, you want to …
25 Mar 2020
UK Economy

The UK’s bailout of the self employed comes with a hidden catch

The chancellor’s £6.5bn bailout of the self employed is welcome. But it has hidden benefits for the taxman, says Merryn Somerset Webb.
27 Mar 2020