Measuring the strength of the economy and the stock market

Jeff Horwich Sep 24, 2012
HTML EMBED:
COPY
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. Andrew Burton/Getty Images

Measuring the strength of the economy and the stock market

Jeff Horwich Sep 24, 2012
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. Andrew Burton/Getty Images
HTML EMBED:
COPY

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 other hand, is pretty hard to explain but at least we can measure it. 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 —that Republicans are more pro-business, that they are into lower taxes,” Sloan says. “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.

Listen to the rest of this story by clicking on the audio player above.

 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.