How much impact do presidents have on the stock market?

Chart
Courtesy of Dimensional Fund Advisors
This chart shows the average return of the Standard & Poor’s 500 for each presidential term going back to 1929.

As part of his bid for a second presidential term, one of Donald Trump’s assertions is that he is responsible for the greatest stock market gain of any president. Putting aside his usual hyperbole, has the stock market in fact done better under him than under past presidents? And more interestingly, can we use historical market performance data to infer whether or not there is any identifiable cause and effect between a president’s period in office and market performance?


On the Market: Which propositions on the ballot will affect real estate?

As we approach the Nov. 3 election, a number of real estate-related state propositions on the ballot deserve your consideration.

Nest Egg Brief: Why is the stock market currently so disconnected from the economy?

Does it seem to you that the stock market is totally disconnected from the reality of the economy?

Nest Egg: Are baby boomers taking on too much investment risk?

Baby boomers are taking on too much risk: That’s what Fidelity Investments is implying in a study of its clients’ retirement accounts released late last year. Fidelity discovered that nearly 40% of 401(k) plans owned by workers born between 1946 and 1964 maintain an allocation to stocks that is higher than Fidelity’s recommended allocation for investors in those age groups. And nearly one in 12 has all of his or her retirement savings in equities.

On the Market: How has COVID-19 affected the real estate landscape?

We like to think that the real estate market is very rational, based on need and desire, practical and coherent. Time and time again, we learn that it just isn’t true. It happens on both a micro and macro level, a transactional level and across the market: Decisions are made based on the new realities buyers and sellers perceive.


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