I have already posted on basketball talk about a fundraiser for President Obama. Now it is this stock fest blog that is also going to embrace the upcoming presidential elections. People will always disagree about the presidency of Barack Obama, but if you ask any stock investor they will be raving about his years as the country's CEO. Will this be a difference maker in November?
President Obama has tooted his horn on this matter and recommended investors with a long-term perspective to go ahead and buy stocks which they feel might be a good deal after having done research on them.
When looking at the performance of the stock market, it just goes to show that the U.S. economy has definitely improved since the recession. Additionally, the stock market is a sign of things to come and if it continues to do well it bodes only good things for the future of this country’s economy.
When looking at history, it reveals that if the Dow went up by more than 20 percent, it was good news for an incumbent. Both Ronald Reagan and Bill Clinton were reelected after they presided over Dow gains of over 20 percent. President Obama should be thrilled with this as the Dow has actually gained 35 percent since November 1, 2009.
The bad news for President Obama is that this Dow gain has not been matched by a wealth effect. There is usually a wealth effect when stock prices increase which increases home prices and hiring tends to go up. But, I guess at the end of the day, people will be looking at the personality of the candidates and how they tell their story for the future of America.