• November 1992: Clinton elected President, Dow = 3240
• November 1994: Republicans retake control of the House and Senate, Dow = 3807
• June 2001: Jim Jeffords leaves Republican party, giving control of the Senate to the Democrats, Dow = 10,990
• November 2002: Republicans retake Senate, Dow = 8537
• November 2006: Democrats retake control of House & Senate, Dow = 12,342
• November 2008: Obama elected President, Dow = 8943
• March 2009, with less than 2 months since Obama has taken office, Dow = 6547
During the first couple years of Clinton, the Democrats had control of the House and Senate, and the Dow increased only slightly. In 1994, the Republicans re-took control of the House and Senate. The Dow increased at an annual rate of nearly 18% per year for the next 6-1/2 years (all while Republicans remained in control).
In June 2001, Jim Jeffords helped the Democrats regain control of the Senate by leaving the Republican party. With the Democrats in control, the Dow plunged at an annual rate of nearly -16% until the elections in 2002, when the Republicans took control of the Senate.
For the next 4 years the Dow increased at an annual rate of over 20% per year under the control of the Republicans.
However, in November 2006, the Democrats took back control of both the House and the Senate. And since then, the Dow has plunged nearly 50%.
Although there are typically upticks during recessions and depressions, it still has an overall downward trend. Anyone else notice a pattern?
• Republican Control = Bull Market and Prosperity
• Democrat Control = Bear Market and Depression
It isn’t necessarily the President of the United States that affects the stock market, but rather Congress (who makes the laws) that affect it. It is even worse when the Democrats control all three: the House, the Senate, and President.
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