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How Stocks Did Under President Trump

How Stocks Did Under President Trump

January 20, 2021
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Today Joe Biden becomes the 46th President of the United States. We’ve already looked forward at what his presidency, coupled with a blue wave in Congress, could mean for policy in Market Policy Projections for 2021, so today we take a look back at how stocks performed under President Donald Trump.

As shown in the LPL Chart of the Day, the Dow Jones Industrial Average (Dow) gained approximately 56% during Trump’s four years in office, which comes out to an annualized return of an impressive 11.8%. “President Trump’s annualized Dow return of 11.8% was the best for any Republican president since President Calvin Coolidge in the Roaring Twenties,” explained LPL Financial Chief Market Strategist Ryan Detrick. “This was still below the annualized returns of Presidents Bill Clinton and Barack Obama.”

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Over the past four years, the Dow has made 126 new all-time highs, more than the 123 under Obama in eight years (albeit at a drastically lower starting point), and the most since the record 263 under Clinton. It is hard to believe it, but six presidents never saw a new Dow high while in power, with Presidents Jimmy Carter and Gerald Ford being the most recent to checkmark this dubious feat.

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The records from 2020 don’t end there, as stocks have seen a record surge since the election. In fact, from election day until the inauguration, the S&P 500 Index has been up a record 12.8%.

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IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. All index and market data from FactSet and MarketWatch. This Research material was prepared by LPL Financial, LLC.Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

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