Ranking the Best and Worst Presidents - Part V
Creating a New Mount Rushmore Based on Wall Street Performance – Part V
In Parts I, II, III, and IV, we analyzed how various U.S. presidents impacted stock market performance, ranking them based on annualized returns.
While some presidents benefited from booming economies, others faced wars, financial crises, and economic recessions that significantly affected market performance.
So far, we have ranked the following presidents based on stock market growth during their time in office:
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)
Lyndon B. Johnson (7.7% per year)
Harry S. Truman (8.1% per year)
Ronald Reagan (10.2% per year)
Gerald Ford (10.8% per year)
Now, in Part V, we continue our ranking, analyzing the next set of presidents who oversaw strong stock market growth.
Ranking the Best Presidents by Stock Market Performance (#17 - #19)
#17 - President Dwight D. Eisenhower (Republican)
Market Performance: 10.9% per year
Term: January 20, 1953 – January 20, 1961
Election Years: 1952, 1956
Dwight D. Eisenhower, also known as Ike, was a five-star General in the Army and served as Supreme Commander of the Allied Forces in Europe during World War II. His presidency oversaw several economic milestones and infrastructure expansions, including:
The establishment of NASA.
The creation of the Interstate Highway System.
The signing of the Civil Rights Act of 1957.
Despite experiencing the Recession of 1958—also known as the Eisenhower Recession—which lasted eight months, the S&P 500 still posted an annualized gain of 10.9% during his presidency.
#18 - President George H.W. Bush (Republican)
Market Performance: 11.0% per year
Term: January 20, 1989 – January 20, 1993
Election Year: 1988
George H.W. Bush, who passed away on November 30, 2018, served one term before losing re-election to Bill Clinton. Although his presidency is often overshadowed by his defeat, stock market performance during his term was among the best.
Many economists suggest that Bush inherited a strong economy from Ronald Reagan. While this is partially true, Bush’s stock market growth actually outpaced Reagan’s. However, his presidency also experienced:
The Recession of 1990, with unemployment rising from 6% to nearly 8%.
A tripling of the federal deficit since the early 1980s.
Stock market returns during his presidency fluctuated:
1989: +32%
1990: -3%
1991: +30%
1992: +8%
Despite these ups and downs, the overall market gained 11.0% per year under Bush’s administration.
#19 - President William McKinley (Republican)
Market Performance: 11.3% per year
Term: March 4, 1897 – September 14, 1901
Election Years: 1896, 1900
William McKinley’s strong stock market performance may surprise some, as most presidents with high market returns served in more modern times. However, McKinley’s presidency coincided with a period of rapid economic expansion, including:
A major recovery from the economic depression that ended before his election.
Policies that favored American manufacturing and industrial growth.
The passage of the Dingley Act (1897), which increased protective tariffs.
The Gold Standard Act, which stabilized currency valuation.
Unfortunately, McKinley’s presidency was cut short when he was assassinated in 1901, but during his time in office, the stock market soared with annualized returns of 11.3%.
Final Thoughts
This series continues to highlight that stock market performance under a president is influenced by numerous factors, including:
Economic policies and fiscal management.
Geopolitical events like wars and trade policies.
Broader economic cycles and external market forces.
While presidents often receive credit or blame for stock market performance, it is crucial to recognize that global and domestic conditions play an even larger role in market movements.
Read More:
For a complete ranking and deeper analysis, revisit Parts I, II, III, and IV of this series. Stay tuned for Part VI, 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.