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FX.co ★ Top 5 US Presidents that bring best stock market performance

Top 5 US Presidents that bring best stock market performance

According to research conducted by Forbes, under some US Presidents, the stock market thrived.  Conventional wisdom says that liberal Democrats are generally bad for the stock market because of their tendencies to large-scale budget spending. Republicans, on the other hand, take a more restrained approach to budget spending, which is certainly bullish for the stock market. However, some experts argue that this concept is actually misleading. Find out the truth in our photo gallery

Top 5 US Presidents that bring best stock market performance

Bill Clinton (1993-2001/Democrat)

William J. «Bill» Clinton, notoriously known for scandals from his personal life, takes first place in the rating. In his presidential campaign, he assured people that he would reinvigorate the economy. Some market experts reckon that he inherited ideal economic conditions for a boom in the stock markets. When he came to power, the inflation rate was less than 3%. Besides, he promptly pushed a tax hike, while the Federal Reserve raised the key rate. Thanks to those steps, he managed to cool the economic growth, and thus inflation did not spike up. With the inflation remaining in check, the stock market started expanding. The active development of new technologies, as well as the birth of future tech giants such as Amazon and Google, pushed the stock market to record highs. Stocks began to grow day by day, and that growth was not always caused by any market drivers. Therefore, a massive bubble appeared threatening to deliver a severe blow to the stock market at any moment. However, the crash in Wall Street occurred after Bill Clinton left the White House. With Bill Clinton being at the helm, the stock market has soared by 210%, which is still an unsurpassed record for America.

Top 5 US Presidents that bring best stock market performance

Barack Obama (2009-2017/Democrat)

Barack Obama, the first African-American US President, occupies second place in the rating. He took over the country during the global economic crisis. Fortunately, the country was ready for a rebound from the recession. By the end of Obama's term, the interest rates were slashed, and the Fed undertook massive monetary injections into the economy. The country fully recovered from the crisis in the second half of 2009, logging one of the longest bull market in history. For several years, the economy has been expanding amid a surge in technology innovation, a significant increase in household income, and lower interest rates. No wonder, the stock market garnered 182%.

Top 5 US Presidents that bring best stock market performance

Dwight D. Eisenhower (1953 – 1961/Republican)

Third place in the rating is given to Dwight D. Eisenhower, a highly esteemed US president. Eisenhower helped to obtain a truce in the Korean War. During his tenure, he worked hard to ease the Cold War tensions. Moreover, he came to power when the country was going through dark times. During his two terms in office, he faced three recessions. The economic downfall was largely due to the restrictive monetary policy after the Fed had doubled the interest rates. Many politicians highly praise Eisenhower for making the country as stable as possible. Besides, he had to deal with the Red Scare tactic as anti-Communist paranoia swept through the United States. Nevertheless, despite the economic ups and downs, the stock markets increased by 129%

Top 5 US Presidents that bring best stock market performance

Ronald W. Reagan (1981-1989/Republican)

Ronald W. Reagan, who dealt with the post-war crisis at the very beginning of his presidency, takes fourth place in the rating. He came to power at a time of extremely prolonged and deep economic recession in history after World War II. Despite the fact that the government managed to ease inflation, it was unable to cope with the higher rates. In the spring of 1981, the US Treasury yield came in at 16%. Stocks bottomed one year later, and by the end of 1982, the country emerged from recession. After the government put a cap on inflation pressures, Wall Street gained momentum. Besides, the bull run in the stock market was prompted by extremely tight monetary policy. At the same time, Communism was in decline and the Red Threat finally disappeared. Investors looked to the West as a place of market freedom. Thus, during Ronald W. Reagan's tenure, the stock market rose by 117%.

Top 5 US Presidents that bring best stock market performance

Harry S. Truman (1945-1953/Democrat)

Harry S. Truman is on fifth place of the rating. In his early term, he had to heal the economy haggard by World War II. Many factories that worked for the defense industry were shut down, causing an unprecedented increase in unemployment. As a result, the country plunged into a recession. The US GDP contracted severely. Luckily, the economy bounced back quickly as the government managed to improve household spending and business confidence. However, Truman faced another brief recession in 1949 after his Fair Deal economic reforms. The measures included in the bill aimed at increasing the minimum wage, as well as legal changes in the country's labor code. The country was simply not ready for such drastic changes and slipped into recession albeit brief. During his presidential term, the stock market grew by 87%.

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