Midday Market Minute: So Far, Obama's Term Has Been Very Good for Investors


Love him or loathe him, Barack Obama has done very well by investors.

There's a long way to go until President Obama hands over the reins of power in January 2017. But as of right now, his presidency will go down as one of the best for stock market investors.

New York Times columnist Floyd Norris points out that the S&P 500 (^GSPC) has doubled during the terms of only four presidential administrations, and President Obama is in line to join that exclusive club.

The Dow is up 105 percent since the day he took office, and climbing some more today.

Of course, timing has a lot to do with it.

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When Obama took office for his first term, the economy was in the midst of the financial crisis and the stock market had already lost 45 percent of its value from the then record high from October 2007.

It would continue to lose ground for another two months, before bottoming out in March 2009. Since then, the market has staged a long, steady rally.

The S&P 500 is up nearly 16 percent so far this year, up 55 percent during the past three years, and since Obama moved into the Oval Office, it's more than doubled in value.

How does that compare with other presidential terms?

Well, Bill Clinton is the runaway winner. During his two terms during the 1990s, the S&P more than tripled -- rising 210 percent.

During Franklin D. Roosevelt's 12 years in office, it jumped 141 percent. Dwight Eisenhower oversaw a 129 percent post-war jump, and Ronald Reagan 118 percent.

Norris notes that if you use the Dow Jones industrial average (^DJI) -- which is an older index than the S&P -- Calvin Coolidge is the all time winner. The Dow rose 256 percent during his six years in office.

One thing all of these presidents have in common is that they took office during or after periods of war or major economic slumps.

On the flip side, the worst stock market period came during the one term of Herbert Hoover -- with the S&P plunging more than 30 percent.

The S&P posted single-digit declines when George W. Bush and Richard Nixon were in office.

One more note about the Obama market. He has the best average annual gain of any president during the 84 years that the S&P has been around. It's up 18 percent for each of the four-plus years he's been in office.

-Produced by Drew Trachtenberg


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posthuf

>"Obama's Term Has Been Very Good for Investors"<

The key word, investors.

How about the rest of us who work for a living? Wall Street and the unions who hate them have been doing fine. The poor and what's left of the middle class, not so much.

This administration and all connected with it seem to have no problem with the poor getting more poor, just so long as the rich are less rich.

The biggest difference between a liberal/socialist and a conservative is they will both look at the same house and the liberal will say, "Nobody should live in a house that nice. I'll take away what they have EARNED and give it to people who haven't earned as much."

The conservative will say, "Everybody should be able to live in a house like that. I'll make less laws so they have the freedom to EARN that house."

May 30 2013 at 1:19 PM Report abuse rate up rate down Reply
Linda Read kw

let me say one name not mentioned and he doesn't have anything to do with Obama. BEN BERNANKE

May 30 2013 at 11:32 AM Report abuse rate up rate down Reply
fhuf1988

I was just reading "What President Obama has meant to Investors and the Stock Market!!!
I was very happy to read this article, because they have critized President Obama on everything he has done. The Stock Market is the highest it has ever been in "History."
While the very wealthy people don't want to pay higher taxes, it has affected Senior Citizens because Medicare has been cut, some medicines have been deleted from Medicare, and Seniors have seen their "Cost of Living" increases cut. If this is what the Republicans wanted, this is what they got!!!!!

May 30 2013 at 11:05 AM Report abuse +1 rate up rate down Reply
1 reply to fhuf1988's comment
posthuf

The Republicans are NOT in charge! Your buddy spent nearly $1 trillion "investing" in companies that couldn't cut the mustard on their own. The market is doing well because those companies shuttered their U.S. operations and moved to China. Our market is doing well because of Chinese investment, not because of anything the current administration has done or not done.

May 30 2013 at 1:21 PM Report abuse -1 rate up rate down Reply
clyogi

Since the economy still stinks under the clown-in-chief, interest rates remain ridiculously low. Therefore, investors have no choice but to buy stocks. Don't expect this to change over the remainder of his term.

May 30 2013 at 10:47 AM Report abuse rate up rate down Reply
Craig

O'man good for investors, yea right, you really mean Uncle Ben is good for investors. If it wasn't for him O'man doesn't have a clue. Oh by the way, anyone could be Fed chairman, heck alls you have to do is print money.

May 30 2013 at 9:34 AM Report abuse rate up rate down Reply
wjs27skeet

Is My Daily Finance a publication of the DNC? What a line of C*ap. I can tell you from personal experience when this Socialist and his Cronies took over I lost over $150,000 I don't know how this article has any credability but the Federal Gov't has been changing the way it reports unemployment numbers and growth. This Article is pure Propaganda!

May 30 2013 at 7:00 AM Report abuse +5 rate up rate down Reply
SweetfeetBaby

About the only thing that honestly be said is that if you invested pretty well in the stoick market, you did better than if you had held onto your greenbacks.

May 30 2013 at 1:01 AM Report abuse rate up rate down Reply
Wecome Gary!

Obamas administration has cooked the books from day one, and they are still doing it.......... all to lure Americans into a sense of security before the hammer drops... and the economy really falls off the cliff.

May 29 2013 at 11:32 PM Report abuse +5 rate up rate down Reply
Tom

The economy does better under democratic administrations because the "trickle down" economics the republicans keep pushing doesn't work.

May 29 2013 at 11:11 PM Report abuse -6 rate up rate down Reply
tsanir

Of course that doesn't mean the stocks that were being counted at the beginning are the same ones affecting those numbers by the end.

May 29 2013 at 10:29 PM Report abuse rate up rate down Reply