Saturday, October 03, 2020

Trump and the stock market

Trump is currently fourth (out of 14) when comparing his first term (so far) to presidents since 1932.  So far the market (SPX) has gained 58.0% since election day.

First is FDR at 137.2%.  Second is Eisenhower at 91.0%.  Third is Clinton at 70.1%.

There have been 25 terms since 1932.  Also topping Trump's 58.0% are Reagan's second term at 61.5% and Clinton's second term at 100.5%.  So Trump is currently sixth out of 25 terms.  Pretty good, but not the best.

Eyeballing the chart, I would say Clinton did that best at 70.1% and 100.5%.  And Bush (W) did the worst at -21.0% and -11.0%.  Bush was coming off the tech bubble in 2000 (Clinton's second term) and hit the financial crisis in 2008.

There were only two other negative terms: -35.0% (Roosevelt's second term) and -28.7% (Nixon's second term).

From the article,

As you can see, as of the close on Thursday (10/1) President Trump is solidly in 4th place overall versus every first-term president since 1932. At the last market top (9/2/20) he was in 4th place and has never been above 4th place when comparing him for the entire first term. He would need a gain of more than 12 percentage points over the next 32 days to move into 3rd place, and it would take a decline of more than 5 percentage points for him to fall to 5th place.

I notice that the chart uses Election Day to start counting.  I wonder how much of a difference it would make if they chose Inauguration Day as the starting point.  Especially since this year we likely won't even know the results on Electrion Day.

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