Skip to main content

Investors: What is better Democrats or Republicans

Off the top, you have to say that the past three administration are a case and point that a Democratic president are better than a republicans for investors; During Clinton's 8 years and during Obama's 8 years the S&P 500 has been a very very strong performer, no su much for both Bushs

In 2015 DILJ did a study, their conclusion was:

There really shouldn't be any debate; on a historical basis, Democratic presidents are better for the stock market. The saying that Republican Presidents are better than Democrats for investors continues to be one of the bigger misconceptions there is in the investment world.
Yet, most investors (and a good portion of Wall Street) is for the Republican?  So there has to be something that the GOP offers that the Dems don't.  One thing for sure, GOP has been a big tax cutter for the richer parts of the electorate.  Again and again you see GOP elected at the state level lowering taxes on the wealthiest (often creating massive fiscal imbalance), but all that these "rich folks" gain from lower taxation they seem to lose from the market.

An excellent example is the impact of ACA (aka Obamacare) granted there are still massive problem with the law as it is written, with the GOP in congress doing everything to block it  (instead of amending) or even in some case making it even more difficult to function, there is no doubt that for the country as a whole it has been a very good thing, it has reduce medical expenses growth rate dramatically.   However, it is very far from being perfect.  Unfortunately the GOP's decision to delegitimize the White House and its occupant make any reasonable reform impossible.  Yet it has been very good for the US economy -- it has absolutely reduced medical costs as a percentage of GDP.  That is good for overall economic wellbeing and for the markets.

So what's up now with the options of Trump and Clinton.  To say that Trump had a bad two weeks would be an understatement of massive proportion.  The right tried, and failed, to imply that Clinton had done the same thing -- except she had not.  Yes she took a US$ 700,000 hit on her portfolio, but the tax reduction is only in her capital gains which was apparently $3,000 -- in 2015 her and her husband paid almost US$ 3 million in taxes.  This scandal is different because Trump has not paid taxes for 20 years -- he has not yet said that he actually paid taxes -- he was very careful to not imply that he did!!!

Clinton is doing well, sure she's not liked but then she was associated with Bill so has no ability to make any Republican happy.  Moreover, as Secretary of State she made mistakes -- it comes with the job.

Aside from all that its all good, it would see that Clinton will win the elections.  

We can only hope, 

Comments

Post a Comment

Popular posts from this blog

The end of Tesla?

 it takes a special kind of idiot, to think that he can antagonize his entire customer base, and think that it will not impact his business. When Elon Musk went to work for Donald Trump, and created the doge department, he antagonized every liberal, and these people represent 90% of his client base.That’s not a brilliant move. Now Elon Musk is worth hundreds of billions of dollar, so he shouldn’t care a great deal, however, he needs to care because of several other issues. The cyber truck has been a disaster, most have had to be recalled because of defective glue, it’s not a truck, it’s not a car, it’s noisy, relatively uncomfortable, but great as a development platform. What Tesla has learned in making car manufacturing more seamless is truly amazing. The problem was that Elon Musk was so pissed with the Democrats, and with Joe Biden, in particular because of some slight, which were just plain stupid too. By the way, that he decided to support with hundreds of millions of dollar, ...
Post a Comment
Read more

Donald Trump‘s bad bargain

 The entire of 2023 and 2024 when Donald Trump was running for the White House, his mantra was no war, that the Ukraine conflict would be resolved in a day, and that he would do everything not to involve America and war. How the world has changed! He finds himself facing three conflicts; Ukraine, still going on almost 5 months after he became president. Gaza, an unspeakable crime against humanity, is obviously going to go all the way to its bitter end. And finally, Israel’s attack against Iran. It’s important to note, that Benjamin Netanyahu first indicated at the United nation that the Iranian were 3 to 5 years away from having the nuclear bomb. He made that statement in 1995. Therefore, no one is surprised that he uses the same two lines every so often. It’s entirely possible, that 30 years after he first announced it, that Iran has finally developed the bomb. It’s also remarkable that Iran, local power has been destroyed, from Yemen, to Syria, via Lebanon and Gaza to small exten...
Post a Comment
Read more

TACO again, but worst!

 Donald Trump got the rare earth metals that he had thrown away on April 2, liberation day as he called it. What did the Chinese get in exchange? The whole deal, is on the wrap right now. But let’s be clear. It’s the Chinese that have the upper hand.Some of the materials made by the Chinese, are simply unavailable anywhere else. suspicions are that the Chinese got the high-end chips that they lost under Biden. Tariffs will probably return to the level of April 1, and in the end Donald and his friends got nothing for it. It gets worse, Chinese exports to United States are down 40%. The Chinese have found new markets, I probably never gonna buy American grain again. Once again, Donald Trump proved he’s a great negotiator. He got absolutely nothing for his Showmanship. He told the world, that everyone would come and kiss his ass, instead they’re laughing At him. There’s no joke about Donald Trump, a 25 and inherited a huge fortune and proceeded to make it a small one. Bottom line, the...
Post a Comment
Read more