A new presidential administration is often a time of hope and anxiety for investors. The good news: Stocks have delivered positive returns the majority of the time during the first 100 days of a new presidential administration.
|President||Party||Inauguration Date||S&P 500 Index* (%)||Dow Jones Industrial
Average Index* (%)
|John F. Kennedy||D||1/20/1961||8.92||6.99|
|Lyndon B. Johnson||D||11/22/1963||11.77||12.46|
|Richard M. Nixon||R||1/20/1969||1.97||2.03|
|Gerald R. Ford||R||8/9/1974||-11.07||-16.68|
|James E. Carter||D||1/20/1977||-4.40||-3.35|
|Ronald W. Reagan||R||1/20/1981||0.88||4.95|
|George H.W. Bush||R||1/20/1989||8.03||8.21|
|William J. Clinton||D||1/20/1993||1.57||5.72|
|George W. Bush||R||1/20/2001||-6.93||1.39|
|Barack H. Obama||D||1/20/2009||8.39||2.76|
|Donald J. Trump||R||1/20/2017||4.97||5.61|
|Joseph R. Biden||D||1/20/2021|
Source: Morningstar, 1/21. *Price return doesn’t include the reinvestment of dividends. Past performance does not guarantee future results. Indices are unmanaged and not available for direct investment.
Bottom Line: The stock market tends to be optimistic at the beginning of a new president’s term regardless of party affiliation.
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S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
Dow Jones Industrial Average Index is an unmanaged, price-weighted index of 30 of the largest, most widely held stocks traded on the NYSE.
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This material is provided for educational purposes only.