Ranking the Best and Worst Presidents – Part IV
Creating a New Mount Rushmore Based on Wall Street Performance – Part IV
In Parts I, II, and III, we analyzed the worst-performing and moderate-performing presidents based on annualized stock market returns.
This ranking aims to determine whether certain election outcomes benefit investors more than others.
Previously, we explored how economic conditions, policy decisions, and external events played a role in shaping market performance. So far, we have ranked the following presidents:
Herbert Hoover (-30.8% per year)
George W. Bush (-5.6% per year)
Grover Cleveland (-4.9% per year)
Richard Nixon (-3.9% per year)
Benjamin Harrison (-1.4% per year)
William Howard Taft (-0.1% per year)
Theodore Roosevelt (2.2% per year)
Woodrow Wilson (3.1% per year)
Franklin Roosevelt (6.2% per year)
John F. Kennedy (6.5% per year)
Jimmy Carter (6.9% per year)
Warren Harding (6.9% per year)
Now, in Part IV, we continue our ranking, examining the next group of presidents based on stock market performance.
Ranking the Best Presidents by Stock Market Performance (#13 - #16)
#13 - President Lyndon B. Johnson (Democrat)
Market Performance: 7.7% per year
Term: November 22, 1963 – January 20, 1969
Election Year: N/A
Lyndon B. Johnson (LBJ) assumed the presidency after the assassination of John F. Kennedy in 1963. His presidency was marked by significant social change and economic expansion, including:
War on Poverty initiatives aimed at reducing income inequality.
Expansion of civil rights, including the Civil Rights Act of 1964.
Creation of Medicare and Medicaid, which transformed U.S. healthcare.
While markets grew by 7.7% annually, the Vietnam War led to increased government spending and rising inflation. These factors later contributed to stagflation (high inflation, low growth, and high unemployment), which affected subsequent presidencies.
#14 - President Harry S. Truman (Democrat)
Market Performance: 8.1% per year
Term: April 12, 1945 – January 20, 1953
Election Years: 1944, 1948
Harry S. Truman became president after the death of Franklin D. Roosevelt in 1945. He is best known for:
Ending World War II by authorizing atomic bombings on Hiroshima and Nagasaki.
Implementing the Marshall Plan, aiding European post-war reconstruction.
Leading the U.S. into the Korean War.
Truman’s presidency saw the post-World War II economic boom, though his final years were affected by rising inflation and labor strikes. Despite these challenges, the stock market posted 8.1% annual returns under his leadership.
#15 - President Ronald Reagan (Republican)
Market Performance: 10.2% per year
Term: January 20, 1981 – January 20, 1989
Election Years: 1980, 1984
Ronald Reagan led the U.S. through one of the most transformative economic periods in history. The 1983 Time Magazine cover declared "The New Economy", signaling the transition from an industrial economy to a technology-driven one. His presidency featured:
"Reaganomics", which included tax cuts, deregulation, and reduced government spending.
Deregulation of key industries, which helped fuel business expansion.
Fed Chair Paul Volcker’s tight monetary policy, which tamed inflation from 12.5% to 4.4%.
The stock market thrived under Reagan, posting an annualized 10.2% return. His policies remain debated, but his pro-business stance and economic expansion contributed to one of the greatest bull markets in history.
#16 - President Gerald Ford (Republican)
Market Performance: 10.8% per year
Term: August 9, 1974 – January 20, 1977
Election Year: N/A
Gerald Ford was never elected as Vice President or President. He assumed office after Vice President Spiro Agnew resigned and later replaced Richard Nixon following Watergate.
His presidency coincided with a period of high inflation and slow economic growth. He inherited:
The 1973-74 bear market, which saw the S&P 500 and DJIA drop by 50%.
High unemployment and inflation, leading to economic stagnation.
Despite these challenges, the market rebounded, averaging 10.8% annual returns. Economic historians attribute this growth more to the market recovering from previous lows rather than Ford’s policies.
Final Thoughts
This analysis continues to demonstrate that stock market performance is influenced by multiple factors, including:
Economic cycles
Government policies
Global events (wars, financial crises, technological advancements)
While some presidents enacted policies that benefited markets, others were affected by circumstances beyond their control.
Read More:
For a complete ranking and deeper analysis, revisit Parts I, II, and III of this series. Stay tuned for Part V, where we examine the top-performing presidents based on stock market performance.
Disclaimer:
This article is for educational purposes only and should not be considered investment advice. For personalized financial planning, contact info@nestfinancial.net.