Stocks have had a great run in Obama's term
One can argue over how big a role the administration played in the huge market rally since March 2009. Gains for, say, Apple, Caterpillar and others are really due to management skill. But Obama did provide one crucial element to the recovery.
For all of the complaints of the business community about Barack Obama, they can't complain much about what his administration and the Federal Reserve have done for the stock market.
The Dow Jones industrials ($INDU) are up 58.3% since he took office. The Standard & Poor's 500 Index ($INX) is up 66.7%. The Nasdaq Composite Index ($COMPX) is up 96.1%. The Russell 2000 Index ($RUT) is up 75.7%.
Remember that Obama took office during the 2008-09 market crash. The market bottomed on March 9, 2009, about seven weeks after he was sworn in. Since then, the Dow is up 100.3%. The S&P 500 has jumped 109.5%, and the Nasdaq has soared 136.5%. The Russell 2000 has surged 138.5%.
If you measure the Dow's gain during a presidential term, Obama ranks seventh of the 19 presidents who took office in the 20th or 21st centuries. He would rank sixth if you measured from the March 9 low.
Republican Calvin Coolidge, who became president after Warren Harding died in 1923, had the best Dow gain during his years in office: 262.8%. The market surged as radios and automobiles became must-haves for Americans, as opposed to gadgets for the affluent.
Next was the 225.2% Dow gain during Bill Clinton's years, a rally built on the personal-computer revolution and the dot-com bubble.
The problem with the Coolidge and Clinton markets was that economic optimism morphed into pure market bubbles. Their successors had to deal with the ensuing blow-offs.
During George W. Bush's terms, stocks slumped after the dot-com bubble burst and the country was staggered by the Sept. 11, 2001, terror attacks. The stock market rose again as the economy recovered but was taken down when the housing bubble burst.
Management execution obviously had a much larger impact on the stocks than Barack Obama. He would surely concede he has nothing to do with Apple's (AAPL) 626.3% gain since its 2009 low, which occurred ironically on inauguration day. Can you say iPod, iPhone and iPad?
Nor would he claim anything to do with Google's (GOOG) 165% gain since its 2008 low, or Amazon.com's (AMZN) 569% gain since November 2008, nor Caterpillar's (CAT) 291% gain since its March 2009 bottom.
Still, among the administration's major achievements are stabilizing the nation's banking system and providing support for the auto industry. The former was done in cooperation with the Federal Reserve. Those helped the markets and the economy.
The administration conducted stress tests on 19 financial institutions, 18 of which were publicly held. All of the 18 stocks are higher, led by Fifth Third Bancorp (FITB), up more than 1,000% from its 2009 low, Capital One Financial (COF), up 630%, and American Express (AXP), up 449%.
|Presidents and the Dow since 1900|
|President||Years in office||Dow chg. during term|
|George H.W. Bush||1989-1993||45.41%|
|William Howard Taft||1909-1913||-1.51%|
|George W. Bush||2001-2009||-21.78%|
“A coalition of community, labor and good government organizations is calling on the U.S. Office of Government Ethics to investigate presidential candidate Mitt Romney for noncompliance with the Ethics in Government Act and compel him to either disclose his investments or divest them,” according to the , who requested the charges.
The Romney profits came from Adelphi, a former parts supplier of the Delco division of General Motors. Adelphi was not technically supposed to be included in the federal bailout money given to the auto industry. But since neither GM nor Chrysler could survive without parts from Adelphi, $12.9 million in federal bailout money was and eventually diverted to hedge funds that Mitt and Ann Romney bought into.
Romney did not disclose his windfall profits from Delphi in his June 1, 2012, Public Financial Disclosure Report to the office of Government Ethics, “because he did not disclose the underlying holdings of his private equity and limited partnership funds,” according to .
With the UAW charges coming to light, the reason for Mitt Romney’s hiden tax returns becomes more apparent and more important as he seeks the presidency.
Vote Robme and elect a liar, tax cheat, and felon for President!
Obama stated at the beginning of his term that he would cut the deficit in half in 2 years. It's been 4 years and our deficit has only increased! We don't need promises we need results. Look at the candidates accomplishments and results. This should be the easiest vote for the educated. Unfortunately, we have too many uneducated individuals in this country. Gimme Gimme Gimme
And yet ANOTHER REASON NOT to deregulate Wall St and the banks. We NEED to stick with what has BEEN WORKING and NOT RETURN TO the BUSH ERA ECONOMICS that Robme supports.
O & Joe in 2012!
OMG! Charley give me a break! Stocks are stuck at 13,000+ and have stalled just like the economy. Besides the stall, they are at a level no higher than where they were shortly before he took office!
Typical MSN article. Misleading in an attempt to make any Democrat liberal look good! Why do I even come here?? Insanity I guess
Markets naturally bounce back. After four years I would hope they were back to where we were.
All I know is many of my fellow tradesmen are still not working 40 hours a week. They have had a terrible last four years and it doesn't look any better. Many older guys have taken early retirement and our pension is still in the yellow by fed standards. It is actually less funded than last year.
If Obama wins again he will be untethered and you will see his full wrath or should I say in Obama's terms "revenge" on America that his father dreamt about.
What a bunch of crap. When you FLOOD the economy with another 6 TRILLION dollars is causes the PRICE of EVERYTHING to go up.
GOLD has gone up nearly $1000 because the number of dollars in circulation. Only an idiot would say the "false rise" in the stock market had anything to do with Obama having done anything positive or corrective.
We STILL have a FISCAL CATASTROPHE after FOUR YEARS of INEPT policies from Obama.
butt crack of obama!
Get ready for inflation folks. You can't print your way out of decades of politically and greed motivated bad financial policy and poor fiscal management. Chickens WILL roost, at some point.
OBAMA - Chicago corruption and incompetence to take us over the cliff now.
ROMNEY - Competence leading to postponement and much bigger and more devastating bubble.
Even though Democrats have delusion built into their DNA, Republicans are falling into the same hope and change fraud of four years ago.
Don't be delusional - OBAMA 2012 !!!
I was happy to see that you took note of the dot com bubble bursting as Bush came into office and that
shortly after we had the 9/ll terror attack. The democrats have overlooked these things and blamed him for any and everything that was problematic during his terms in office. Pleae also note that he did not blame Bill Clinton. The markets have done well because we couldn't make money on CDs or houses or anything else. Bernanke forced us into risky investments with low rates. That only works for a while. I am afraid that no matter who is president next inflation is going to bring the market down again . Whoever is president will get the blame. Presidents do not have as much to do with the market as everyone thinks.
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Breaking up big banks is an untested solution to the too big to fail problem that attempts to isolate and dismantle large, troubled institutions while protecting the rest of the economy.
VIDEO ON MSN MONEY
[BRIEFING.COM] Equity indices remain in the red with the Russell 2000 (-0.6%) showing the largest loss while the Dow Jones Industrial Average (-0.5%) follows not far behind.
As mentioned earlier, the Dow is seeing significant pressure from Boeing (BA 125.34, -3.20), which trades lower by 2.5%. Although Boeing is a major component within the price-weighted index, it is not the only source of weakness. Nike (NKE 78.55, -0.91) and Verizon (VZ 46.54, -0.61) also trade ... More
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