Fascinating article sent to me in the New York Times just before the election results were announced.
According to the article, "a $10,000 investment in the S.& P. stock market index would have grown to $11,733 if invested under Republican presidents only, although that would be $51,211 if we exclude Herbert Hoover’s presidency during the Great Depression. Invested under Democratic presidents only, $10,000 would have grown to $300,671 at a compound rate of 8.9 percent over nearly 40 years."
Two thoughts:
- Barack Obama is a Democrat, and should therefore see the biggest gain on the stock markets based on prior Democrat performance.
- We all talk about the last year as the worst since the Great Depression and Obama is taking over the Presidency when the markets are at their lowest levels since then.
It may be worth sticking a few dollars, pounds, euros or yen in an S&P Tracker Fund.
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...