The stock market has been on a roll, with the S&P 500 and the Dow Jones Industrial Average closing at all-time highs in December and January. Politicians are now vying to take credit for this success.
Former President Donald Trump claimed credit for the stock market rise in a recent social media post, attributing it to his polling advantage over President Joe Biden. However, Transportation Secretary Pete Buttigieg countered this claim, stating that Biden deserves credit for the stock market’s success.
While Buttigieg claimed that the stock market hit an all-time high under Biden and not under Trump, the facts tell a different story. The S&P 500 saw multiple record highs during Trump’s presidency, even after the onset of the coronavirus pandemic.
The stock market can be influenced by investor perceptions and crowd psychology, making it a complex indicator of the economy. Despite this, many Americans have investments in the stock market, making its health an important factor in economic perceptions.
Currently, the S&P 500 is hovering around 5,100, well above its value at the end of Trump’s term. This is not surprising, as most presidents tend to see higher stock prices than their predecessors.
In conclusion, while the stock market has seen new highs under Biden, it is important to acknowledge that it also reached record levels during Trump’s presidency. The connection between the stock market and the broader economy is complex, and caution is necessary when attributing its success to any one individual or administration.
