To: Ron McKinnon who wrote (52368 ) 11/6/2004 8:18:40 AM From: Kelvin Taylor Respond to Interesting point Ron. Let's take a closer look to see the details.There are as many myths as there are facts about stock market performance in election years. One widely held belief is that the stock market does better when the Republican party is in the White House, supposedly because it favors business interests. But, according to the Stock Traders Almanac, over the last century the market has actually done better under the Democrats. I'm using the numbers for the last century only up to 1995 because the huge bull market of the last half of the 1990s under the Democrats, and the severe bear market of 2000-2003 under the Republicans, would skew the numbers too much. Leaving out those last nine years, according to the Stock Traders Almanac, the stock market gained an average of 8.1% per year from 1901 through 1995 when the Republicans were in the White House, and averaged 10.5% when the Democrats were in the White House. However, there's another side of the coin. Inflation tended to be higher under the Democrats, and lower under the Republicans. So the better stock market performance under the Democrats was offset by a reduction in the purchasing power of the dollar. thebullandbear.com
