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How Well Have Stocks Done Under President Trump?

How Well Have Stocks Done Under President Trump?

February 18, 2020
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We hope everyone had a nice Presidents’ Day yesterday, and by nice we hope you got the day off work!

In honor of George Washington, starting in 1971, the third Monday in February was originally celebrated as a Federal holiday to honor our country’s first president, but over time the day has changed to honor all the US presidents.

“Although Presidents’ Day is a nice day to get a deal on a washing machine or car, it is also a time to reflect on all of the great leaders our country has had over the past 200 plus years,” explained LPL Financial Senior Market Strategist Ryan Detrick.

One of the common questions we receive here at LPL Research is how stocks and the economy do under various political parties. We’ve discussed this in Can Congress Get Along For Valentine’s Day?, Another Look At Election Years, and A Closer Look At Election Years.

In honor of Presidents’ Day, we will show how stocks have done under every president since the inception of the Dow Jones Industrial Average.

As shown in the LPL Chart of the Day, there have been bull and bear markets under each party. As we move closer to a highly charged election this November, we’d like to stress that separating your political views from your investment decisions is a likely wise decision. There could have been Republicans who missed out of big gains under President Obama, while Democrats may have missed out on solid gains under President Trump. We would suggest you instead focus on the fundamentals of the economy, inflation, interest rates, and profits for a better chance to reach your long term investment goals.

For more of our investment insights, check out our Outlook 2020: Bringing Markets Into Focus.

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. 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.If your representative is located at a bank or credit union,  please note that the bank/credit union is not registered as a broker-dealer or investment advisor.  Registered representatives of LPL may also be employees of the bank/credit union.These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, the bank/credit union.  Securities and insurance offered through LPL or its affiliates are: Not Insured by FDIC/NCUA or Any Other Government Agency. Not Bank/Credit Union Guaranteed. Not Bank/Credit Union Deposits or Obligations. May Lose Value

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