President Donald Trump has repeatedly warned that the stock market is doomed if he loses the 2020 election and Democrats take the White House.
If you want your 401k’s and Stocks, which are getting close to an all time high (NASDAQ is already there), to disintegrate and disappear, vote for the Radical Left Do Nothing Democrats and Corrupt Joe Biden. Massive Tax Hikes – They will make you very poor, FAST!
— Donald J. Trump (@realDonaldTrump) July 6, 2020
According to a survey by Hartford Funds, 47% of investors also believe that a Republican president is better for investments, while 37% believe a Democrat is better.
But looking at history, the association of a Republican president with better stock market performance is not steeped in reality. Here’s what’s really the case.
Historically, the stock market performs better under Democrats.
It’s a commonly held belief that the stock market and economy perform best under a Republican president, thanks to the GOP’s corporation-friendly approach to taxes and government spending. But a look at the numbers shows the opposite is true.
“The historical record and the research on the divide between stock market performances assessing Democrat and Republican administrations is clear,” said Mark Hamrick, senior economic analyst at Bankrate. “Investors have seen more generous returns from equities when Democratic presidents were in the White House, going back to 1945.”
Analysis by CFRA Research found that since 1945, the S&P 500 has averaged an annual gain of 11.2% when Democrats controlled the White House, versus an average 6.9% gain under Republicans.
A study by Liberum, a U.K.-based investment bank, found similar results. The firm examined stock market and gross domestic product data going back to 1947, when official GDP calculations were introduced. It found that since 1947, the S&P 500 experienced an annual return of 10.8% under Democratic presidents,