I can say for myself, that the growth rate of my 401k and IRA, have both dramatically increased since Trump has been in office.
Well, since we're talking about comparing 401Ks, let's do a little number crunching. We'll use the S&P 500 ETF
SPY as our proxy for the market:
Barack Obama
Days in office: 2,291
SPY price on first day in office: $92.00
SPY price on last day in office: $227.53
Annualized Return: 11.99%
Donald Trump
Days in office: 964
SPY price on first day in office: $227.53
SPY price at close today: $292.57
Annualized Return: 9.98%
Sources:
Calculate Duration Between Two Dates – Results
SPDR S&P 500 (SPY) Stock Price, Quote, History & News
Return on Investment (ROI) Calculator
Was not the low starting price under Obama, artificially low.... primarily due to a recession created by policies that Obama supported? Obama sued banks to make sub-prime loans.
I would have assumed that the price increase would have been much larger, since it started from an artificially low amount due to the recession.
Nevertheless, I think there is a difference between looking at average prices of stocks, and how much wealth is actually being generated. Because without a doubt, my portfolio has done better in the last 3 years, than in the 3 years prior.
I think the reason that your numbers, and my reality, don't line up.... is not because you are wrong... you are not wrong in the numbers you gave.
But in a portfolio, there is more to it than just the stated value of the stocks owned. You also have dividends to account for. The money earned from simply owning the stock.
I myself, learned this through experience. I remember watching that the values of the S&P stayed relatively flat, but my portfolio kept going up in value.
What I realized was, even if the stocks do not increase much in value, every other month, I'm getting dividends from owning those stocks. That money is then used to purchase more stock. So while the S&P wasn't increasing that much, my portfolio value did.
And where does a company get the money to pay out dividends? From profits. And what is the biggest direct loss of profits? The corporate tax.
With the corporate tax lower, my dividends have increased. Since my dividends have increased, my portfolio has purchased more and more stock.
So while you can correctly say that based on the numbers the S&P has only gone up in average prices so much.... my portfolio is still doing very well.