What happened to the stock market after the 2008 election?
Nov. 5, 2008 — -- The stock market took a major beating today after the election of Democrat Barack Obama and Democratic gains in both the House and Senate. The Dow Jones industrial average losing almost 500 points and markets in Europe also saw drops. Initially, stocks fell as investors cashed in from a week-long rise in share prices.
How did the market perform during President Obama’s entire term?
You can see impressive gains above from when President Obama left office in January 2017 to the end of Trump’s four years in office. An Investment in the Nasdaq resulted in the best return of well over 142%. Let’s now take a look at how the market performed over President Obama’s entire term in office.
What happened to the stock market during Obama's presidency?
Despite its inauspicious economic beginnings, the Obama administration has overseen an impressive upswing in the stock market. As of the end of Obama's term on January 20, 2017, the Dow Jones had more than recovered from its January 2009 slump, resting nicely at 19,732.40 for the day, more than double what it was on inauguration day.
Where does Obama rank among all presidents' stock market gains?
Among all presidents, the market's annualized gain under Obama ranks third behind Clinton and Gerald Ford -- although Ford presided over less than a single term.
How much did the stock market dip in 2008?
On October 24, 2008, many of the world's stock exchanges experienced the worst declines in their history, with drops of around 10% in most indices. In the U.S., the DJIA fell 3.6%, although not as much as other markets.
How much did the Dow Jones go down in 2008?
777.68 pointsOn September 29, 2008, after Congress failed to pass a $700 billion bank bailout plan, the Dow Jones Industrial Average falls 777.68 points—at the time, the largest single-day point loss in its history.
What President crashed the stock market?
The 1920s were a period of optimism and prosperity – for some Americans. When Herbert Hoover became President in 1929, the stock market was climbing to unprecedented levels, and some investors were taking advantage of low interest rates to buy stocks on credit, pushing prices even higher.
How long did it take for the market to correct after 2008?
The S&P 500 dropped nearly 50% and took seven years to recover. 2008: In response to the housing bubble and subprime mortgage crisis, the S&P 500 lost nearly half its value and took two years to recover.
Who made money in 2008 crash?
1. Warren Buffett. In October 2008, Warren Buffett published an article in the New York TimesOp-Ed section declaring he was buying American stocks during the equity downfall brought on by the credit crisis.
How much did the stock market drop in 2008 and 2009?
Much of the decline in the United States occurred in the brief period around the climax of the crisis in the fall of 2008. From its local peak of 1,300.68 on August 28, 2008, the S&P 500 fell 48 percent in a little over six months to its low on March 9, 2009.
Who's the best president of all time?
Abraham Lincoln has taken the highest ranking in each survey and George Washington, Franklin D. Roosevelt, and Theodore Roosevelt have always ranked in the top five while James Buchanan, Andrew Johnson, and Franklin Pierce have been ranked at the bottom of all four surveys.
How much influence does the president have on the stock market?
But over the past century, the stock market has mostly run briskly across most of the presidential cycle before losing momentum during election years. Since 1930, the Dow Jones Industrial Average has gained an average of 10.0% in a president's first year and 7.9% in the second, according to YCharts data.
Who profited from the stock market crash of 1929?
The classic way to profit in a declining market is via a short sale — selling stock you've borrowed (e.g., from a broker) in hopes the price will drop, enabling you to buy cheaper shares to pay off the loan. One famous character who made money this way in the 1929 crash was speculator Jesse Lauriston Livermore.
How much did the stock market drop in 2009?
54%The DJIA hit a market low of 6,469.95 on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high The bear market reversed course on March 9, 2009, as the DJIA rebounded more than 20% from its low to 7924.56 after a mere three weeks of gains.
How was the financial crisis of 2008 solved?
1 By October 2008, Congress approved a $700 billion bank bailout, now known as the Troubled Asset Relief Program. 2 By February 2009, Obama proposed the $787 billion economic stimulus package, which helped avert a global depression.
Will the stock market crash again in 2022?
Nope! They're more concerned about what will happen five, 10 or even 20 years from now. And that helps them stay cool when everyone else is panicking like it's Y2K all over again. Savvy investors see that over the past 12 months (from May 2021 to May 2022), the S&P 500 is only down about 5%.
What was the lowest Dow Jones in 2008?
777.68On September 29, 2008, the DJIA had a record-breaking drop of 777.68 with a close at 10,365.45.
What is the biggest Dow drop in history?
2,997 pointsThe largest point drop in history occurred on March 16, 2020, when concerns over the ongoing COVID-19 pandemic engulfed the market, dropping the Dow Jones Industrial Average 2,997 points. The largest point gain (+2,113) occurred on March 24, 2020.
What is the largest drop in stock market history?
The stock market crash of 1929 was the worst in history, as the market fell 89% from its peak. These are the most notable crashes in history, and how long it took to recover from them.
How much has the stock market dropped in 2022?
The Dow Jones industrial average sank around 2.8 percent. Each of the indexes is down sharply in 2022, and there is no clear indication of when the markets could stabilize. Cryptocurrencies also swooned Monday, with bitcoin losing more than 10 percent of its value.
A Presidential Comparison
Investors should be very careful about drawing conclusions from election or inauguration day performance because there isn't enough data. For example, except for Franklin Roosevelt, the maximum number of inauguration days for any president is two, which is too small for statistical analysis.
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What is the biggest economic issue facing the new president?
Treasury, said that the largest economic issue facing the new president is the "looming entitlement programs."
What did Obama say about the Bush tax cuts?
Obama says he wants to preserve the Bush tax cuts for families earning less than $250,000 and wants to expand tax credits for low-income families as part of his Making Work Pay program. For families making less than $250,000, Obama supports higher taxes.
What was Obama's plan for the housing crisis?
Obama laid out a rescue plan for the housing crisis. Obama proposed a 90-day moratorium on home foreclosures, which would give some homeowners a chance to catch up on missed payments and give the government a chance to develop a systematic plan for rewriting the terms of unaffordable mortgages for qualified homeowners.
What is the challenge for Obama?
Rising unemployment is another challenge for President-elect Obama. As consumers slow their spending, businesses are being forced to lay off growing numbers of workers. Some economists expect the next jobs report, due out Friday, to show that as many as 200,000 Americans were cut from company payrolls in October.
Who beat Ronald Reagan in 1984?
The previous record was a 1.2 percent gain in 1984 when Ronald Reagan beat Walter Mondale. Before 1980, the market was closed on Election Day. Talk on Wall Street switched this morning from who would win the election to how will Obama shape his administration.
Did Obama extend unemployment benefits?
Obama has pledged to extend unemployment benefits and eliminate taxes on those benefits. He supports allowing more leniency on hardship withdrawals from 401 (k) and IRA savings accounts, by temporarily lowering or suspending the tax penalties on withdrawals. EXIT POLLS 2008: Results and Breakdown.
When did the Great Recession start?
Stock market under Obama. The Great Recession officially started in December 2007, about a year before Obama became President and two months after the Dow 30 Industrials hit an all-time high of 14,165. The Dow then fell over 50% to 6,547 in March 2009, which was three months before the recession officially ended in June.
When did earnings move higher?
After the stock markets recovered from the downturn created by the Great Recession, from 2009 to 2012 earnings moved consistently higher until 2014. This led to 50 and 38 record highs in 2013 and 2014, respectively.
Stock market under Obama versus Trump
Government policy decisions have a huge impact on the economy and stock market. It's important to see how markets performed under Obama versus Trump’s presidency. The S&P 500, which is the widest market benchmark, has seen cumulative gains of 46 percent under Trump compared to 66 percent under Obama.
GDP Obama versus Trump
How did the GDP, the broadest measure of economic activity, trend under Trump versus Obama? The difference regarding the GDP in Trump’s presidency versus Obama is quite stark. During Trump’s tenure, the GDP has seen cumulative gains of 3.37 percent and 0.97 percent on an annualized basis.
Stock market under Democrats versus Republicans
After Trump versus Obama, most people likely wonder if the political party has something to do with the stock market performing better or worse. According to analysis from Bankrate, historically, stock markets have performed better when Democrat presidents are in office.
Which president had the highest stock market?
The best cumulative returns under any U.S. president were under Bill Clinton. During his eight-year term, the S&P 500 gained a whopping 210 percent. At that time (1993–2001), inflation fell to less than 3 percent after remaining high.
Stock market today
The election season is marred with increased volatility. So far, the markets are rallying on Nov. 3. The Dow Jones rallied by 423 points or 1.6 percent on Nov. 2. The markets are building on these gains on Nov. 3. The S&P 500 was trading higher by 1.47 percent at 9:52 a.m. ET on Nov.
Stock market Biden versus Trump
Voters are deciding between Joe Biden and President Trump based on several factors. The factors include how the economy and the stock markets could perform under their respective presidencies. The performance will depend on their respective policies related to taxes, infrastructure push, and big tech regulation.
When did the stock market bottom out?
The stock market bottomed out in March 2009, but then the economy slowly healed, beginning what would eventually become the longest bull market in American history. Digging out of the depths of the Great Recession was a long and slow process, though. Annual GDP growth never topped 3% in the Obama era.
When did the bull market end?
A trade war with China temporarily sucked some of the air out of the market’s gains in late 2018, but it wasn’t until the coronavirus pandemic hit the United States in early 2020 that the bull market officially came to an end.
What was the economic crisis of 1981?
Crushed by Federal Reserve Chairman Paul Volcker’s war on inflation, the economy stumbled into a brief recession in July 1981. Unemployment spiked to nearly 11%.
How did the S&P 500 decline under Bush?
The S&P 500 declined 40% under Bush, the worst among modern administrations. Bush inherited the dotcom bust, which spawned the 2001 recession. The downturn was deepened by the 9/11 terror attacks. Growth gathered steam in 2004 and 2005, fueled in part by low interest rates and the housing boom.
When is the S&P 500 closing?
Cumulatively, the S&P 500 gained 67% from Trump’s inauguration to the market close on Tuesday, January 19, 2021 — his last full day in office.
Who was the first president to go into recession?
Ronald Reagan. President Ronald Reagan’ s first four years in the White House weren’t particularly lucrative for Wall Street. Crushed by Federal Reserve Chairman Paul Volcker’s war on inflation, the economy stumbled into a brief recession in July 1981. Unemployment spiked to nearly 11%.
Does Biden put much emphasis on stocks?
Unlike his predecessor, incoming President-elect Joe Biden does not put nearly as much emphasis on stocks as a gauge of the country’s strength or wellbeing. “The idea that the stock market is booming is his only measure of what’s happening,” Biden said of Trump in the final presidential debate in October.
When Did Obama Leave Office?
President Obama’s presidency ended on January 20, 2017, at 11:59 a.m. Donald Trump became the new president at noon on January 20, 2017. Donald Trump’s first term (and potentially only term) as president is slated to end on January 20, 2021, at 11:59 a.m.
What Was The Stock Market When Obama Left Office?
Now that we know when Obama’s presidency ended on January 20, 2017, we can provide an overview of where the stock market was when he left office.
Conclusion
It is easy to look at the above numbers and conclude that one president outperformed the other. However, it is much more complex than just looking at market performance and pronouncing a winner.
2007
2008
- At the end of January, the BEA revised its fourth-quarter 2007 GDP growth estimate down.9 It said growth was only 0.6%. The economy lost 17,000 jobs, the first time since 2004.10 The Dow shrugged off the news and hovered between 12,000 and 13,000 until March.2 On March 17, the Federal Reserve intervened to save the failing investment bank, Bear Stearns. The Dow dropped …
September 2008
- The month started with chilling news. On Monday, September 15, 2008, Lehman Brothers declared bankruptcy. The Dow dropped more than 200 points.2 On Tuesday, September 16, 2008, the Fed announced it was bailing out insurance giant American International Group Inc. It made an $85 billion loan in return for 79.9% equity, effectively taking ownership. AIG had run out of cash. It wa…
October 2008
- Congress finally passed the bailout bill in early October, but the damage had already been done.24 The Labor Department reported that the economy had lost a whopping 159,000 jobs in the prior month.25 On Monday, October 6, 2008, the Dow dropped by 800 points, closing below 10,000 for the first time since 2004.26 The Fed tried to prop up banks by lending $540 billion to money mar…
November 2008
- The month began with more bad news. The Labor Department reported that the economy had lost a staggering 240,000 jobs in October.34 The AIG bailout grew to $150 billion.35 The Bush administration announced it was using part of the $700 billion bailouts to buy preferred stocks in the nations' banks.36 The Big Three automakers asked for a federal bailout. By November 20, 20…
December 2008
- The Fed dropped the fed funds rate to 0%, its lowest level in history.29 The Dow ended the year at a sickening 8,776.39, down almost 34% for the year.2
2009
- On January 2, 2009, the Dow climbed to 9,034.69.2 Investors believed the new Obama administration could tackle the recession with its team of economic advisers. But the bad economic news continued. On March 5, 2009, the Dow plummeted to its bottom of 6,594.44.37 Soon afterward, President Barack Obama's economic stimulus plan instilled the confidence nee…
Aftermath
- Investors bore the emotional scars from the crash for the next four years. On June 1, 2012, they panicked over a poor May jobs report and the eurozone debt crisis. The Dow dropped 275 points.39 The 10-year benchmark Treasury yield dropped to 1.47.40 This yield was the lowest rate in more than 200 years.41It signaled that the confidence that evaporated during 2008 had not q…