Title: Stock Market Performance Under Biden vs. Trump: What Investors Need to Know
In a surprising turn of events, the stock market has thrived under President Joe Biden, despite former President Donald Trump’s dire predictions. Trump famously warned that the stock market would crash if Biden became president, but since Biden took office, the S&P 500 stock index has risen a healthy 40%.
While Trump’s presidency saw a 13% increase in the S&P 500 at the same point in his term, the COVID-19 pandemic caused a sharp stock sell-off and a deep recession, tarnishing Trump’s economic record. Despite this, Trump continues to take credit for stock market gains, even after leaving office.
Presidential policies have a limited impact on stock values, with Federal Reserve monetary policy and economy-wide trends playing a larger role. The Fed’s actions during the Great Recession and COVID-19 pandemic have had a significant impact on stock market performance.
Biden’s policies, including a higher corporate tax rate, have not dampened stock market gains, and voters have not rewarded him for the strong economy. With Biden and Trump neck-and-neck in polls, Biden is likely to highlight the market’s performance as a reason for voters to give him another four years in office.
However, as Trump knows all too well, presidents have limited control over market reversals. Investors should be cautious about taking investing advice from politicians and focus on broader economic trends and market fundamentals.
