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With the 2020 U.S. elections upon us, many wonder what the consequences will be if a win by Joe Biden and what would happen, instead, with him reconfirmation of Donald Trump in the White House.
Obviously, there are several sectors in which the success of one and the other could have a strong impact, with a particular focus on the stock market. Several investment funds, for example, have made their strategies public in the two possible scenarios.
The question investors are asking is this: is a Democrat or a Republican more advantageous to the stock markets? So let’s find out what best presidents of the United States according to Wall Street.
The best presidents of the United States according to Wall Street
Top Ten Stock Market Returns of US Presidents
- William J. Clinton (Democrat), 210% return
- Barack h. Obama (Democrat), return of 182%
- Dwight D. Eisenhower (Republican), 129% return
- Ronald W. Reagan (Republican), 117% profitability
- Harry S. Truman (Democrat), 87% profitable
- George HW Bush (Republican), 51% returns
- Lyndon B. Johnson (Democrat), 46% profitable
- Donald J. Trump (Republican), 43% return
- Jimmy E. Carter (Democrat), 28% profitable
- Gerald R. Ford (Republican), returns 26%
In general, the Democrats in the presidency are believed to be more detrimental to the economy and the stock market in general, mainly due to the tendency to introduce more rules and interventions in a system based on liberalism.
On the eve of Elections USA 2020For example, a democratic shift would almost certainly mean a step back from Trump’s massive corporate tax cut (a sign that would be bad for stocks).
However, dem interventions could generate greater economic stimulus (which the market welcomes despite the deficit implications) and stability in the market. trade relations with China it would be a great advantage.
As can be seen, from the end of World War II to the present, positive annual returns on stocks have been 10.6% with a Democrat in the White House, as they stopped at 4.8% with the Republican leadership.
Clinton the best, Trump in ninth place
The first place is firmly occupied by Bill clinton, which from 1993 to 2001 posted a cumulative stock market return of 210%.
Second is located Barack Obama, in office from 2009 to 2017, with a rate of 182%, while conquering the last place on the podium with the 129% is Dwight eisenhower, first NATO commander and Conservative president from 1953 to 1961.
Donald trump manages to position ninth in the Top Ten of this special ranking, having guaranteed variable income since 2017 to date a profit of 43%, with the party colleague Gerald ford which closes in tenth position with the 26%.
With the Democrats the best results for the Stock Market
However, according to various analysts and observers, it would be a mistake to expect too close a correlation between market trends and the leading part of the United States.
In fact, as some economists explain, it is often a misplaced obsession financial world towards politics, since in many cases the economic cycle and the context of international politics have influenced more than the color of the presidency.
However, it has been noted that investors respond negatively in case of health problems of their national leader, as happened for a heart attack on Eisenhower or by the Kennedy assassination in Dallas. In both circumstances there was a release sudden, respectively of 6.5 and 3%.
