|
|
 |
 |
|
Presidential
Elections and Equity Returns
Brian
Trumbore
President/Editor, StocksandNews.com
You?ve heard the stories on how the
year before a presidential election year, along with
the election year itself, have historically been powerful
times to invest in equities. Well, the facts below
do paint a compelling story. Of course the biggest
reason for the positive bias is the fact that Congress
and the administration in power are normally priming
the fiscal pumps to ensure that all of us feel good
when we enter the voting booth. Most eras, ?It?s about
the economy, stupid,? has a truthful ring to it.
| Year |
S&P
500
|
Small
Caps
|
| |
|
|
| 2004 |
?
|
?
|
| 2003 |
+13.4*
|
+21.6%*
|
| |
|
|
| 2000 |
-9.1%
|
-3.6%
|
| 1999 |
+21.1%
|
+29.8%
|
| |
|
|
| 1996 |
+23.1%
|
+17.6%
|
| 1995 |
+37.4%
|
+34.5%
|
| |
|
|
| 1992 |
+7.7%
|
+23.4%
|
| 1991 |
+30.6%
|
+44.6%
|
| |
|
|
| 1988 |
+16.8%
|
+22.9%
|
| 1987 |
+5.2%
|
-9.3%
|
| |
|
|
| 1984 |
+6.3%
|
-6.7%
|
| 1983 |
+22.5%
|
+39.7%
|
| |
|
|
| 1980 |
+32.4%
|
+39.9%
|
| 1979 |
+18.4%
|
+43.5%
|
| |
|
|
| 1976 |
+23.8%
|
+57.4%
|
| 1975 |
+37.2%
|
+52.8%
|
| |
|
|
| 1972
|
+19.0%
|
+4.4%
|
| 1971 |
+14.3%
|
+16.5%
|
| |
|
|
| 1968
|
+11.1%
|
+36.0%
|
| 1967 |
+24.0%
|
+83.6%
|
| |
|
|
| 1964
|
+16.5%
|
+23.5%
|
| 1963
|
+22.8%
|
+23.6%
|
| |
|
|
| 1960
|
+0.5
|
-3.3%
|
| 1959
|
+12.0%
|
+16.4%
|
| |
|
|
| 1956
|
+6.6%
|
+4.3%
|
| 1955
|
+31.6%
|
+20.4%
|
| |
|
|
| 1952
|
+18.4%
|
+3.0%
|
| 1951
|
+24.0%
|
+7.8%
|
| |
|
|
| 1948
|
+5.5%
|
-2.1%
|
| 1947
|
+5.7%
|
+0.9%
|
| |
|
|
| 1944 |
+19.8%
|
+53.7%
|
| 1943 |
+25.9%
|
+88.4%
|
| |
|
|
| 1940 |
-9.8%
|
-5.2%
|
| 1939
|
-0.4%
|
+0.4%
|
| |
|
|
| 1936 |
+33.9%
|
+64.8%
|
| 1935 |
+47.7%
|
+40.2%
|
*Returns
as of June 11. Small cap return represented by DFA
Micro Cap Fund. Russell 2000 is up +18.9%, year-to-date,
thru 6/11.
[Source:
Ibbotson Associates / 2003 Yearbook]
Ibbotson
has employed various indices in calculating small
cap returns since 1926, namely the fifth capitalization
quintile of stocks on the New York Stock Exchange
for 1926-81, Dimensional Fund Advisors' Small Company
Fund, 1982-2001, and, since April 2001, the DFA Micro
Cap Fund.
Wall
Street History will return next week.
Brian
Trumbore
|
|
Go to 
The BUYandHOLD website contains links to third-party websites on the Internet. BUYandHOLD provides these links to these websites only as a convenience to users of the website. Links on the BUYandHOLD website are not endorsements by BUYandHOLD or Freedom Investments, implied or express, of the linked sites or any products, services or links in such sites; and no information in such sites has been endorsed or approved by BUYandHOLD. Linked sites are not under the control of BUYandHOLD or Freedom Investments, and we are not responsible for the contents of any linked site or any link contained in a linked site. No information contained in the BUYandHOLD website or accessed through any linked site, or any link contained in a linked site, constitutes a recommendation by BUYandHOLD or Freedom Investments to buy, sell or hold any security, financial product or instrument. Information accessed through linked sites is not, nor should be construed as, an offer or a solicitation of an offer, to buy or sell securities by BUYandHOLD or Freedom Investments. BUYandHOLD does not offer or provide any investment advice or opinion regarding the nature, potential, value, suitability or profitability of any particular security, portfolio of securities, transaction or investment strategy, and any investment decisions you make will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Copyright
© 1999 – 2009 Freedom Investments. All Rights Reserved.
Freedom Investments, Inc. Member FINRA/SIPC
Privacy & Security
|
