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_NorCal_D_ Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-22-03 02:18 PM
Original message
Take a look at this Yahoo finance quiz.
Edited on Wed Oct-22-03 02:20 PM by _NorCal_D_
http://finance.yahoo.com/?u



The question: For 1927-1998, during which kind of U.S. presidential administration did the stock market perform best?


The answer:The correct answer is:
Democratic

A 2003 paper looked seriously at the 18 presidential administrations from 1927-1998 and showed that in fact Democratic administrations are associated with better stock market performance.1
The authors did not just tally up stock market returns by administration period--by that analysis, Democratic administrations are associated with about a 5% performance advantage for the stock market. But that could be the effect of more favorable economic conditions (inherited or otherwise) during Democratic administrations.


So the authors analyzed this phenomenon by controlling for business cycle factors like interest rates and dividend yields, as well as for factors like risk (stock market volatility, it seems, is about the same under both types of administrations). Looked at this way, the performance advantage looks a bit bigger: other macroeconomic factors being equal, the stock market tended to perform 10-20% better under Democratic administrations than Republican ones.


Looks like Republicans are not the party of fiscal responsibility after all. B-)
On edit: Forgot link. :silly:
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Wickerman Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-22-03 02:33 PM
Response to Original message
1. Great find!
Stands to reason, the top dogs do fine in a tumble, but those of us with little stock value take a huge hit - the Top dogs don't mind the shake up. By that twisted standard they would prefer a republican creating poor performance, so it would make sense they would rally behind the "conservatives". It is, after all, about money.
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Avalon Sparks Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-22-03 10:00 PM
Response to Reply #1
2. Kick
For the evening Crowd
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