During the 2020 election many statements were made by the Trump camp that a Biden victory would cause massive losses to your Savings Plan. The theory, we presume, was that Trump is a better business person and would support the economy better than Biden and his Democratic “tax and spenders”. Let’s look at the 3 major market indexes to see how that prediction has turned out so far.
DURING THE TRUMP ADMINISTRATION: (4 years)
THE DOW-JONES AVERAGE +12% (average annual growth)
THE S & P 500 AVERAGE + 9% (average annual growth)
THE NASDAQ AVERAGE + 25% (average annual growth)
Not bad numbers but let’s compare them against the Biden numbers on 2 different bases. First we measure the period from the day we knew Biden would be the next president. November 4, 2020 (even though many doubted it); and second, let’s measure performance from Biden’s Inauguration date. Both measurements end on April 26, 2021.
(1) (2)
from 11/4/2020 from 1/20/2021
to 4/26/2021 to 4/26/2021
(173 days) (97 days)
INDEX:
THE DOW-JONES AVG. +22% +9%
annually projected to +46% +34%
THE S & P 500 AVG. +22% +9%
annually projected to +46% +34%
THE NASDAQ AVG. +22% +5%
annually projected to +46% +19%
This chart–if you were patient enough to read the numbers–shows that in almost every category the Biden time-in-office has produced superior returns to the Trump years. When you add the fact that 3 of 4 Trump years were PRIOR to COVID and ALL of Biden’s time-in-office is DURING COVID, the performance improvement for Biden is even more dramatic. The economic prediction for 2021 is for unprecedented growth (up to 6.6%). This just about guarantees that the first full year under Biden will show a far greater return than seen in any Trump year return.
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