Which American party is in power, investors have got better returns from the market, know the whole truth
new Delhi. The countdown to the US presidential election has begun. Elections are likely to be held in December 2020 or January 2021. If in the 75 years from 1945 to 2020, many presidents appeared from Truman to Trump. How many presidents also completed their two terms. In which some of the nationalities were made up of the Reblican Party and some of the Democratic Party. If you see the move of the market, whenever the President of the Democratic Party was elected, then the market got a lot of investors. On the other hand, investors got disappointed when the Reblican Party came to power. According to a Forbes report, investors gained 10.6 per cent during the Democratic Party in power, compared to 4.8 per cent when the Reblican party was in power. Let us also tell you what the market investors got during the tenure of President from Truman to now.
Harris S. Truman (1945–53) (Democratic Party)
Harris S. Truman became the President of the United States during the Second World War. He also suffered a relapse. During his tenure, he also underwent two economic reforms. First they increased the minimum wage. At the same time, he also promised to give equal rights to all employees. The stock market achieved 87 percent returns.
D Eisenhower (1953–61) (Reblican Party)
Republican Party President D Eisenhower has been one of the country’s most popular presidents. During his eight-year tenure, he faced 3 downturns in the country, but he took such decisions of the monetary policy and the Fed Reserve on interest rates, which kept the stock market moving. During his tenure, market investors received a return of 129 per cent.
John F. Kennedy (1961–63) (Democratic Party)
When John F. Kennedy became president, he had a collapsing economy and an unemployment rate of 6.8 percent. Which he took bold steps to improve. He started the bold domestic program before his assassination. He also cut income tax rate and reduced corporate tax. Kennedy’s tenure was short. In such a situation, the investors could get 16% return.
Lyndon B. Johnson (1963–69) (Democratic Party)
After Kennedy, the Democratic Party once again became the recruits. Lyndon B. Johnson completed another term in addition to Kennedy’s remaining two years. During this time new private companies were entering the market. The war with Vietnam had also started. The relief was that there was no recession. During this time the Fed Reserve lowered interest rates. There was also no economic change. Market investors received only 46 per cent returns during his tenure.
Richard Nixon (1969–74) (Reblican Party)
Richard Nixon’s term for the American Economy is counted as one of the worst. When he became president, inflation had reached its peak. The economy growth rate was quite slow. The unemployment rate had risen drastically. Nixon freezes allowances and prices to fight inflation, going contrary to the fundamental ideology. Crude oil prices skyrocketed in 1973 and the Watergate scandal surfaced on Nixon. Because of which the market crashed. Had to suffer 16 months of recession. During this period, the investors had to lose below 0 – 20 per cent.
Jimmy E. Carter (1977–81) (Democratic Party)
Nixon’s last two years of tenure were completed by Gerald Ford. Then Democrat Jimmy E. Carter became the country’s president. It was one of the most difficult years for the American economy. When Carter was president, the country was in a quagmire of recession, inflation, unemployment. During this time, the price of gold reached $ 800 an ons. The Fed had raised interest rates. During this period, market investors received a return of 28 per cent.
Ronald Reagan (1981–89) (Reblican Party)
The American economy faced a downturn in the era of Ronald Reagan, but this time the Reblican Party kept the country’s economy in the market. The only cure for fighting inflation was the increase in interest rates. As a result, the US Treasury Yield rose more than 16 percent. The Fed kept the monetary policy tight after the economy rebounded. Due to which the market remained strong. During this period, market investors achieved a return of 117 per cent.
George Bush Sr. (1989–93) (Reblican Party)
George Bush became the country’s president in 1989. After that, the price of oil skyrocketed by Iran waging war on Kuwait. The market was busted. The Fed Reserve raised interest rates once again to reduce inflation. The Bill Clinton campaign started in the last round of George Bush Tenier. During this period, the returns to market investors were less than 50 percent.
William J. Clinton (1993–2001) (Democratic Party)
William J. Clinton, one of America’s most controversial and most liked presidents of market investors. If this term is called the Golden Age for the American stock market, it will not be a big deal. Because during the 8-year tenure of Clinton, market investors have achieved 210 percent returns. During this time companies like Google and Amazon worked to boost the market. The market also benefited from the Fed’s rise in interest rates from time to time.
George Bush Jr. (2001–09) (Reblican Party)
It would not be wrong to call George Bush Jr.’s term the worst period in American economic history. During this time, not only the economy went down but the stock market also crashed. During this time, two economic crises or, say, America had to face the recession. In which one great depression was also involved. During this period, stock market investors saw a return of -40 per cent. Which is the worst performance in American history.
Barack Obama (2009–17) (Democratic Party)
Barack Obama will be named in the top 5 of the best presidents in US history. There is also no doubt in this fact because during his tenure, after his removal from the US Great Depression, he increased the country’s earnings by keeping low interest rates. During his tenure, the market created many records and gave 182% returns to market investors. In such an economy, Obama’s term after Clinton is considered to be the best.
Donald Trump (2017 to now) (Reblican Party)
When Donald Trump became the President of the country, he had a tremendous challenge to sustain the country’s economic growth with low interest rates. During his tenure, he started a trade war with China. Which had an impact on the US stock market. After that the corona virus epidemic spread in America. Because of which lockdown was imposed. During this time the market crashed. Well, due to some American companies soon recovery was also seen. Market investors have received 43 per cent returns during Trump’s tenure.