The Obama Surge On Wall Street

Now here’s an interesting – um – “tidbit.” Since Barack Obama took office, the stock market is up 67.9 %. That’s fifth best for all presidents since 1900 for a similar time in office. Given that the market was in the toilet when Obama was sworn in and largely had no directionto go but up, and given that presidents generally have little to do with stock market performance, this may or may not mean much. To the extent that the stock market holds itself out as a barometer of future economic performance, it could contain a hopeful message.

For some perspective, the presidents under whom the market performed even better were FDR (best by a wide margin, over 230% increase in his first term), Calvin Coolidge (hardly a harbinger of things to come) Bill Clinton and Dwight Eisenhower. Jeff Sommer does a take on the politics of it all at the New York Times .

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Author: ELIJAH SWEETE

Contributor, aka tidbits

  • dduck

    ES, FYI, Some people feel that a part of the rise in the stock market is due to low interest rates and particularly for dividend paying stocks which there are a lot of in the DJ30 and the S&P 500.
    http://westwoodgroup.com/wp-content/uploads/2012/03/Myths-of-Dividend-Stocks.pdf

  • http://www.elijahssweetespot.com ELIJAH SWEETE

    Yeah, that could make some sense, Duck. One might also make an argument in favor of GW Bush for using TARP to prop up banks and insurance companies and in favor of Obama for propping up auto companies and industrial concerns. There are likely lots of reasons, and, as always both praise and blame to go around…no clear cut heroes or villians and all of it seasoned with a dash of circumstance.

  • dduck

    If interest rates were to go up, Fed has said not for two years, then you would see a major reversal.

  • http://www.americaincontext.com Barky

    It’s not just low interest rates but the continued fall in real estate, ongoing fiscal disaster in Europe and a return to uncertainty in other foreign markets is forcing investors back into stocks.

  • dduck

    Yep.