Tuesday officially marked President Donald Trump’s last full day in office. Investors now have a chance to get some perspective on Trump’s term by comparing the impact his policies have had on the country to the impact of previous administrations.
With President-elect Joe Biden set to take over on Jan. 20, here’s a look back at how the stock market performed under Trump.
Trump’s Stock Market Numbers: Trump campaigned in 2016 and in 2020 as the best choice for the U.S. economy. The best representation of the real U.S. economy is gross domestic product, but Trump often used the stock market as a scorecard for his policies.
Here’s a look at annual S&P 500 returns during Trump’s presidency.
How Trump Compares: Overall, S&P 500 returns averaged about 14.5% during Trump’s term in office. Here’s a look at how those returns stack up to President Barack Obama:
In his eight years in office, S&P 500 annual returns averaged 12.4% under Obama — about 2% lower than Trump’s growth rate.
Here’s a look at average S&P 500 annual returns under the previous six U.S. presidents:
- Jimmy Carter (D): 6.8%
- Ronald Reagan (R): 9.8%
- George H.W. Bush (R): 12.8%
- Bill Clinton (D): 15.8%
- George W. Bush (R): -2.4%
- Barack Obama (D): 12.4%
- Donald Trump (R): 14.5%
In his four years in office, annual S&P 500 returns under Trump were second-best among the past seven presidents.
Overall, stock market returns were highest under Clinton and Trump. Stock market returns were lowest during the second Bush presidency and the Carter administration.
Benzinga’s Take: The stock market performed well under Trump, but investors seemingly have high expectations for Biden as well given the S&P has rallied another 12.7% since the November 2020 election.
The strong start to 2021 is historically atypical given stocks have performed better in post-election years when the incumbent president wins the election than in years following a change in leadership.
A version of this article was originally published on Oct. 28, 2020.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.