Measuring the strength of the economy and the stock market

The Dow Jones news-ticker in Times Square reads 'U.S. Stocks climb on Bernanke's speech' on August 31, 2012 in New York City.

We've said it before, and we'll say it again: the economy and the stock market are not one and the same.

The performance of the economy under a president is open to wide interpretation. The performance of the stock market, on the hand... Well, it is pretty hard to explain, but at least we can measure that. And what do we find when we do?

Allan Sloan got curious. He's Fortune magazine's senior editor-at-large.

There is an argument that stock market returns -- our investments -- might fare better under a Republican president.

"The logic goes -- and it makes sense as logic," says Sloan, "that Republicans are more pro-business, that they are into lower taxes; so therefore, Republicans will have more investor-friendly programs, and therefore, investors will do invariably better under Republican presidents than Democratic presidents."

But research shows that this assumption might not hold much weight.

 

 

About the author

Jeff Horwich is the interim host of Marketplace Morning Report and a sometime-Marketplace reporter.

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