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.
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