Let’s look at the stock market performance from 1961-2024.
Assume we invested $10,000 in the stock market and allowed growth to compound only during Republican presidencies; our $10,000 would have done well, growing to approximately $105,000 during those 32 years.
If we did the exact same thing, but invested only during the 32 years of Democratic presidencies, we would have again done well…exceptionally well. Our $10,000 would have grown to approximately $570,000.
This equals a difference of close to 7% PER YEAR in favor of stock market performance during Democratic administrations.
In fairness, we should point out that one horrific year—2008—landed at the end of the George W. Bush administration.
Given the fact that a 37% drop in the S&P 500 Index resulted in a harsh impact on the Republican side of the ledger, let us run a hypothetical scenario, as follows: We will add 25% to the Republican data, AND deduct 25% from the Democratic data.
After making this adjustment to “share” the impact of 2008, growth under Republican presidents would have increased to $131,000; growth under Democrats would have increased to $427,000, still a significant difference: about 4% more PER YEAR in favor of the Democratic
