Bulls, Bears, Donkeys and Elephants
Since 1929, Republicans and Democrats have each controlled the presidency for nearly 40 years.
So, which party has been better for American pocketbooks – and, capitalism as a whole?
Consider what would have happened if, during those years, you had to invest exclusively under either Democratic or Republican administrations…
As of October 2008, a $10,000 investment in the S.& P. stock market index would have grown to $11,733 (at a compound rate of 0.4%) if invested only under Republican presidents.
NOTE: That would be $51,211 if we exclude Herbert Hoover’s presidency during the Great Depression which pulled the average down to -30.8%.
Invested under Democratic presidents only, $10,000 would have grown to $300,671 at an average compound rate of 8.9% over those 40 years. The Clinton administration (1993 – 2001) had the best performance over all at 15.2%.
This likely bodes well for the Obama administration providing we can sort out a way to settle down the day traders (average age: 33).
Peace be to my Brothers and Sisters.
Brian Patrick Cork
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