Clinton's winning of the Presidential Election and the next 8 years brought the biigest stock
market gainsof the last 100 years, Of course, the Internet Revolution played a very big role, too.
But, if we want to make money in the stock market, we should not think that Republicans are
better for the stock market than are Democrats. The data show the opposite is true. A good
place to start a study of this is in the Liscio Report's work in the subject.
"Democrats have a clear edge on GDP growth: 4.4% vs. 2.6%. Even if you start the clock with
Truman in 1949 (eliminating the war boom and immediate postwar bust), the Dem advantage survives,
with average GDP growth of 4.5%. The partisan difference is widespread, too, not dependent on a few
strong or weak readings: the blue bars stack towards the top of the graph, and the red bars towards
the bottom. It might surprise some readers to learn that the Carter years weren’t quite as bad as
some remember—though the inflation performance was miserable.
"The blue years have an edge on stock returns, with the S&P 500 rising an average of 4.7% a year in
real terms (price only, excluding dividends, deflated by the CPI) under Democratic administrations,
compared with 2.9% under Republicans. (Starting the clock in 1949 raises the Dem average to 6.9%."
( http://tlrii.typepad.com/theliscioreport/2008/07/presidential-ec.html )
