harry-s-truman-80 originalHarry Truman famously said that the only way to live like a Republican was to vote for a Democrat.  It’s hard to say if that is true, but what is significantly evident is that the stock market tends to perform better when a Democrat is President.

Using data from Robert Shiller, S&P 500 returns since 1893 were analyzed.  All returns were adjusted for inflation and dividends.  What resulted was clear evidence that Democrats tend to be better for the stock market than Republicans.

The first chart, shows the overall growth in the market since 1893, differentiated by party.  The second chart shows how one would have fared if s/he had invested only during Democratic presidencies or Republican presidencies.  Chart three shows that the average annual yield during Democratic presidencies is 7.62% and the average for Republican presidencies is 5.86%.  Chart 4 shows the annualized quadrennial returns of each presidential cycle.

The evidence is clear.  The Democratic party is usually better for the stock market.

S P 500 Chart 1 S P 500 Chart 2 S P 500 Chart 3 S P 500 Chart 4


One thought on “If You Want To Live Like A Republican Vote For A Democrat

  1. Pingback: However, you still might want a Republican congress… | TDP Research Group

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s