During Donald Trump’s first two years, he constantly emphasized how the stock market is the evidence of his leadership’s efficiency. And while stock values doesn’t signify a conclusive verdict on the country’s economic performance, presidents definitely have major impacts on the financial market.
Acquiring short-term response in stock is much easier compared to getting long-term gains as it typically take years to yield results. Evaluating the markets is something contending parties like to do especially when there’s an election coming up.
Trump in particular compared himself to his predecessor, Barack Obama. So, how do these two leaders measure up in terms of stock market performance?
How did the S&P fared under the past two presidents?
Trump Has Quite A Way To Go
Under Obama’s leadership, the S&P 500 grew by 56.4%, the Drew Jones Industrial increased 50.6%, and the Nasdaq was up 92.9%.
Trump’s numbers, on the other hand, 21.4% for the S&P, 25.2% for Dow, and 34.2% for Nasdaq.
Trump-Obama Comparisons Are Getting Uglier
While Obama’s first three years has been optimistic, Trump’s, on the other hand, has been unpredictable.
According to Mark Hamrick, senior economic analyst at Bankrate.com, Trump has made poor decisions that had negative effects on business sentiment and economy. For instance, announcement of additional tariffs and a negative reactions by the market were recently announced.
In addition, tax cut – a huge instrument he once had to stimulate stocks – is already used up. According to Mark Gokhman, head of asset allocation at Pacific Life Fund Advisors, the impact of the tax reform cushion the U.S. from the tariff fallout affected the rest of the world. Unluckily, that momentary tax reform increase was already going to make yearly evaluations a lot more harder. And should all the declared tariffs be completely instituted, the U.S. economy will have to deal with a $230 billion tax.
Overall Growth In The Economy Hasn’t Changed Since Trump’s Leadership
Trump comparing himself to Obama – who can’t return to presidency – may be easy. But contending against the stock market growth during Obama’s period of leadership is a lot harder.