Lakhota
Diamond Member
By Bob Drummond
While Republicans promote themselves as the friendliest party for Wall Street, stock investors do better when Democrats occupy the White House. From a dollars- and-cents standpoint, its not even close.
The BGOV Barometer shows that, over the five decades since John F. Kennedy was inaugurated, $1,000 invested in a hypothetical fund that tracks the Standard & Poors 500 Index (SPX) only when Democrats are in the White House would have been worth $10,920 at the close of trading yesterday.
Thats more than nine times the dollar return an investor would have realized from following a similar strategy during Republican administrations. A $1,000 stake invested in a fund that followed the S&P 500 under Republican presidents, starting with Richard Nixon, would have grown to $2,087 on the day George W. Bush left office.
The market does tend to do better under Democrats than under Republicans, Sam Stovall, chief investment strategist at S&P Equity Research in New York, said in a telephone interview. Is it because Republicans mishandled the economy, or inherited a weak economy? Ill leave that to others.
More: Stocks Return More With Democrat in White House: BGOV Barometer - Bloomberg