Stock Price Charts

Is there a correlation between democratic or republican governments and the stock index?

The ups and downs of stock indexes are usually seen as indicators of business climate. It is also thought that republican governments tend to be more pro-business than democratic ones. So it could be expected that stock indexes perform better in republican presidential terms than in democratic ones. But of course, many other factors could offset this influence. So the question may be rephrased as: Is there empirical evidence of a correlation between the performance of the stock markets and the party in power?

Public Comments

1. the answer is YES, before I expalin a few words, if you had a chance, check this book out TRADERS ALMANAC by JEFF HIRSCH, he discuss some of your points Actually, stock market does better when we have Democratic president the stock market did even better when the congress is deadlock meaning, the congress have democratic congress and republican president or congreess is republican and the president is democratic Check this book out TRADERS ALAMAC by JEFF HIRSCH
2. Democrats do better. Take a look her, for instance: http://www.slate.com/id/2071929