Want Better Investments? Invest With Dem Presidents

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Image © 2012 Leo Soderman - Creative Commons Non-Commercial

Invest with Dems - 1100% return. Invest with GOP - 200%. You do the math - Image © 2012 Leo Soderman - Creative Commons Non-Commercial

Bloomberg is no bastion of liberalism. So, when they release a report that shows Democrats make better investments, it carries a little extra weight.

Bloomberg Government did a study going back to the Kennedy inauguration – 50 years – and used as a benchmark a $1000 investment in the Dow average. They then did analysis on how that investment would grow if it was only invested during either a Democrat or Republican president. For each analysis, the investment was “pulled out” during the opposing party’s administrations.

via Analysis: Stock Returns Are Significantly Higher When A Democrat Is President | ThinkProgress.

But as it turns out, Obama is not the only Democratic President under whom the stock market has done well for investors. A Bloomberg Government report shows that since the 1960′s, stocks have done significantly better under Democratic administrations than under Republican ones:

The BGOV Barometer shows that, over the five decades since John F. Kennedy was inaugurated, $1,000 invested in a hypothetical fund that tracks the Standard & Poor’s 500 Index (SPX) only when Democrats are in the White House would have been worth $10,920 at the close of trading yesterday.

That’s more than nine times the dollar return an investor would have realized from following a similar strategy during Republican administrations. A $1,000 stake invested in a fund that followed the S&P 500 under Republican presidents, starting with Richard Nixon, would have grown to $2,087 on the day George W. Bush left office.

That’s more than 500% difference.

The GOP likes to say that they are pro-business and that Democrat policies are bad for business. They like to claim business is stifled under Democrat administrations. They like to complain about regulations, about government intrusion into business affairs.

But the numbers put the lie to those claims. According to the report, even if you remove the Democrats best run (under Clinton) and the Republicans worst (under George W. Bush), the Dems still come out ahead. Keep that in mind the next time you hear the GOP blather on about how bad Democrats are for business.

By the way – The Dow closed over 13,000 today, the highest since May 2008.

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