Politics
Most people believe that the Republicans are the party of business and the stock market. Republicans claim they help businesses, therefore the stock market should have better returns. However, the evidence is contrary. Overall, the S&P 500 return has been higher by almost 10% under Democratic presidents than their Republican counterparts and the volatility has been down. There might be some underlying factors that could influence this number though.
Recently, the stock market has tanked as we have all seen. Many people blame this on politics, specifically the Republican Party, directly or indirectly. Although can the Clinton administration be thanked for the .com bubble, and then the George W. Bush administration be blamed for its following bust? It is hard to pinpoint blame or credit for stock market crashes and booms on politics and specific presidents. Mostly, it seems to be a combination of factors that could be attributed to the current president at least indirectly. In general it is better to look at the underlying economic and political factors, rather than if a donkey or an elephant is in the White House.
Tags: administration, economy, News, politics, president, stock market
