Ranking the Best and Worst Presidents - Part VI

Creating a New Mount Rushmore Based on Wall Street Performance – Part VI

In Parts I, II, III, IV, and V, we analyzed how U.S. presidents impacted stock market performance, ranking them based on annualized returns. Throughout this series, we have explored how economic conditions, financial crises, wars, and policy decisions influenced market outcomes.

So far, we have ranked the following presidents:

1. Herbert Hoover (-30.8% per year)

2. George W. Bush (-5.6% per year)

3. Grover Cleveland (-4.9% per year)

4. Richard Nixon (-3.9% per year)

5. Benjamin Harrison (-1.4% per year)

6. William Howard Taft (-0.1% per year)

7. Theodore Roosevelt (2.2% per year)

8. Woodrow Wilson (3.1% per year)

9. Franklin Roosevelt (6.2% per year)

10. John F. Kennedy (6.5% per year)

11. Jimmy Carter (6.9% per year)

12. Warren Harding (6.9% per year)

13. Lyndon B. Johnson (7.7% per year)

14. Harry S. Truman (8.1% per year)

15. Ronald Reagan (10.2% per year)

16. Gerald Ford (10.8% per year)

17. Dwight D. Eisenhower (10.9% per year)

18. George H.W. Bush (11.0% per year)

19. William McKinley (11.3% per year)

Now, in Part VI, we reveal the three highest-ranked presidents based on stock market performance.

Ranking the Best Presidents by Stock Market Performance (#20 - #22)

#20 - President Barack Obama (Democrat)

• Market Performance: 13.8% per year

• Term: January 20, 2009 – January 20, 2017

• Election Years: 2008, 2012

Barack Obama took office in the midst of the Great Recession, which lasted from December 2007 to June 2009. The economic collapse stemmed from:

• The housing market bubble of 2006–2007.

• The subprime mortgage crisis of 2007–2008.

• Severe job losses and a damaged financial sector.

One of Obama’s first major actions was signing the American Recovery and Reinvestment Act of 2009, which aimed to stabilize the economy.

Some critics argue that Obama benefited from timing, as the stock market had already bottomed out, leaving nowhere to go but up. However, market confidence was restored, leading to positive returns every year of his presidency, including six years of double-digit growth.

#21 - President Bill Clinton (Democrat)

• Market Performance: 15.2% per year

• Term: January 20, 1993 – January 20, 2001

• Election Years: 1992, 1996

Bill Clinton presided over one of the longest and most lucrative bull markets in history. While not as long as the 11-year bull market of the 2010s, the gains during Clinton’s presidency were larger. His time in office saw:

• The dot-com boom, driven by the rise of internet technology.

• A 546% increase in the S&P 500 from 1990 to 2000.

• The strongest five-year market run in history (1995-1999), with annual returns of:

  • 37.2% (1995)

  • 22.7% (1996)

  • 33.0% (1997)

  • 28.6% (1998)

  • 21.0% (1999)

Although the dot-com bubble burst in 2000, Clinton’s pro-business policies, budget surplus, and economic expansion helped deliver one of the strongest stock market performances ever recorded.

#22 - President Calvin Coolidge (Republican)

• Market Performance: 26.1% per year

• Term: August 2, 1923 – March 4, 1929

• Election Year: 1924

At the top of the list is Calvin Coolidge, who far outpaced every other president in terms of stock market growth. During his 5 ½ years in office, the stock market soared by an astonishing 266%—nearly matching the combined returns of Obama and Clinton.

Coolidge presided over the Roaring Twenties, a period of rapid economic expansion fueled by:

• Industrial growth and consumer spending.

• Technological advancements in automobiles, radio, and manufacturing.

• Stock market speculation, which contributed to soaring asset prices.

While Coolidge left office six months before the Stock Market Crash of 1929, his presidency remains unmatched in terms of annualized market returns.

Final Thoughts

This six-part series has highlighted the complex relationship between presidential leadership and stock market performance. While economic policies can influence markets, external factors such as wars, recessions, and financial bubbles play an even larger role.

Presidents like Coolidge, Clinton, and Obama benefited from strong economic tailwinds, while others, like Hoover and Nixon, struggled with economic crises. Investors should always remember that past market performance does not guarantee future results.

Read More:

For a complete ranking and deeper analysis, revisit Parts I, II, III, IV, and V of this series.

Disclaimer:

This article is for educational purposes only and should not be considered investment advice. For personalized financial planning, contact info@nestfinancial.net.