Ranking the Best and Worst Presidents – Part III
Creating a New Mount Rushmore Based on Wall Street Performance – Part III
In Part I and Part II, we examined how various U.S. presidents impacted stock market performance, ranking the worst-performing presidents based on annualized market returns. That analysis highlighted how economic cycles, crises, and policies influenced stock market growth (or decline) during different administrations.
The worst-performing presidents included:
Herbert Hoover (-30.8% per year) – Took office just before the 1929 Stock Market Crash and the Great Depression.
George W. Bush (-5.6% per year) – Faced the Dot-com crash, 9/11 attacks, and the 2008 financial crisis.
Grover Cleveland (-4.9% per year) – His second term was marked by the Panic of 1893 and a severe economic downturn.
Richard Nixon (-3.9% per year) – Oversaw high inflation, the end of the gold standard, and the 1973–74 bear market.
Benjamin Harrison (-1.4% per year) – Witnessed rising government spending and the passage of high trade tariffs.
William Howard Taft (-0.1% per year) – Stock market performance remained relatively flat during his term.
Theodore Roosevelt (2.2% per year) – Focused on trust-busting, but stock market returns were moderate.
Woodrow Wilson (3.1% per year) – Led the U.S. through World War I and the 1918 flu pandemic, both of which impacted economic growth.
Now, in Part III, we shift our focus to presidents who oversaw stronger stock market performances and how their policies influenced economic expansion.
Ranking the Best Presidents by Stock Market Performance
#9 - President Franklin D. Roosevelt (Democrat)
Market Performance: 6.2% per year
Term: March 4, 1933 – April 12, 1945
Election Years: 1932, 1936, 1940, 1944
Franklin D. Roosevelt (FDR) took office during the Great Depression and led the country through World War II. His policies had a profound impact on the economy and markets, including:
Implementing the New Deal, which introduced government spending programs to boost economic recovery.
Establishing Social Security, providing financial security for retirees.
Leading the U.S. into World War II, which spurred industrial growth and military production.
Despite these challenges, the stock market grew at an annualized rate of 6.2% during his presidency, reflecting a gradual recovery from the Great Depression and economic expansion due to wartime production.
#10 - President Calvin Coolidge (Republican)
Market Performance: 7.1% per year
Term: August 2, 1923 – March 4, 1929
Election Year: 1924
Calvin Coolidge led the country during the Roaring Twenties, a period of economic boom. His presidency was marked by:
Pro-business policies, including tax cuts and limited regulation.
A significant rise in consumer spending and stock market speculation.
Advancements in manufacturing and technology, fueling economic growth.
The stock market surged by 7.1% annually under Coolidge, reflecting widespread prosperity. However, excessive speculation and lack of financial regulation contributed to the conditions leading to the 1929 Stock Market Crash, which occurred shortly after his term ended.
#11 - President Bill Clinton (Democrat)
Market Performance: 10.8% per year
Term: January 20, 1993 – January 20, 2001
Election Years: 1992, 1996
Bill Clinton’s presidency oversaw one of the most sustained economic expansions in modern history, characterized by:
Rapid technological innovation and the rise of the Dot-com boom.
A shift toward budget surpluses, reducing national debt.
A booming job market and rising wages.
Under Clinton’s leadership, the stock market grew at 10.8% annually, benefiting from economic expansion and investor confidence. However, the Dot-com bubble began forming, which later burst in the early 2000s.
#12 - President Barack Obama (Democrat)
Market Performance: 12.1% per year
Term: January 20, 2009 – January 20, 2017
Election Years: 2008, 2012
Barack Obama inherited an economy in freefall, with the stock market reeling from the 2008 financial crisis. His administration focused on:
The American Recovery and Reinvestment Act, injecting stimulus into the economy.
Strengthening financial regulations through Dodd-Frank legislation.
A gradual recovery in housing and job markets.
As the economy stabilized, markets rebounded, and the S&P 500 posted an annualized return of 12.1% during his presidency, marking one of the strongest recoveries in stock market history.
Final Thoughts
This three-part analysis demonstrates that stock market performance varies widely across different presidencies. While presidential policies can influence markets, external events—such as wars, economic booms, financial crises, and technological advancements—often play a bigger role in determining long-term stock performance.
While investors may look at historical trends for guidance, it’s essential to remember that past performance is no guarantee of future results. As history has shown, markets can be unpredictable, and economic cycles impact different presidencies in unique ways.
Read More:
For a complete ranking and deeper analysis of Wall Street performance under different presidents, revisit Part I and Part II of this series. If you're interested in discussing investment strategies, feel free to reach out to us.
Continue reading Part IV
Disclaimer:
This article is for educational purposes only and should not be considered investment advice.
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