Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Thursday, 2 February 2017

Stock Market's Performance in the First Year of a Republican President

The stock market is down for the first year of a Republican President - excluding 
the first year he got re-election.
We looked back to data from ex-President George W. Bush in 2001 to 
ex-US President Dwight D. Eisenhower in 1953.

We show below the price of the S&P500 for the first year of a Republican President
Orange reflects the price at the start of the month
Blue reflects the price at the end of the month

George W. Bush 2001

George H. W. Bush 1989

Ronald Reagan 1981


Richard Nixon 1969

Dwight D. Eisenhower 1953
Conclusion:
1) The first year of a Republican President is bad for the stock markets,
4/5 times the market is down
2) We did some correlation analysis on Singapore STI and the US markets.
Turns out they track each other fairly closely. Down for US = down for STI

Maybe, just maybe, you might not want to hold stocks this year?

Remember to offer your opinions. If you don't put your two cents in, 
how can you expect to get change?

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