Bulls, Bears, Donkeys, and Elephants

Op-Chart TOMMY MCCALL Bulls, Bears, Donkeys and Elephants Since 1929, Republicans and Democrats have each controlled the presidency for nearly 40 years. So which party has been better for American pocketbooks and capitalism as a whole? Well, here's an experiment: imagine that during these years you had to invest exclusively under either Democratic or Republican administrations. How would you have fared? As of Friday, 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 Depression. Under Democratic presidents only, $10,000 would have grown to $300,671 at a compound rate of 8.9 percent over nearly 40 years. Growth of $10,000** INVESTED IN THE S.& P. MARKET INDEX UNDER EACH POLITICAL PARTY $300,671 $51,211 (excluding Hoover) -$11,733 DEMOCRATS over 39.9 years REPUBLICANS over 39.7 or 35.7 years Average annualized return** OF THE S.& P. MARKET INDEX UNDER EACH PRESIDENT 11.0% 10.9% 10.4% DEMOCRATS 10.2% 8.9% REPUBLICANS Excluding Hoover 4.7% 0.4% Including Hoover 0.4% George H.W. Bush Dwight D. Eisenhower Gerald Ronald Ford Reagan -3.9% -5.1% 1/20/89 – 1/20/93 1/20/53 – 1/20/61 8/9/74 - 1/20/77 1/20/81 – 1/20/89 Richard Nixon George W. Bush DEMOCRATS 1/20/69 – 8/9/74 15.2% 1/20/01 – 10/10/08 8.9% 8.2% 7.7% 7.5% 6.9% 6.5% 4.7% 0.4% Harry Truman Lyndon B. Johnson Roosevelt Jimmy Carter Bill Franklin D. John F. Clinton Kennedy 1/20/93 - 1/20/01 4/12/45 - 1/20/53 11/22/63 - 1/20/69 3/4/33 - 4/12/45 1/20/77 – 1/20/81 1/20/61 – 11/22/63 Tommy McCall is the former information graphics editor of Money Magazine. *The S.& P. market index was the S.& P. 90 before March 4, 1957, 30.8% and the S.& P. 500 afterward. **Excluding dividends. Herbert Hoover Source: Bloomberg Financial Markets. 3/4/29 - 3/4/33 The S.&P. index fell a total of 77.1% during Hoover's term, or -30.8% on an annualized basis over his four years in office.