http://finance.yahoo.com/?uThe question: For 1927-1998, during which kind of U.S. presidential administration did the stock market perform best?
The answer:The correct answer is:
DemocraticA 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: