“I have long believed that stock markets are the best barometer of the health, wealth and security of a nation.”
—Lawrence Kudlow, former Reagan economic advisor
“The Dow has fallen 18 percent since the last trading day of Bush’s term. Clearly, Wall Street thinks that Obama’s tax, spend, and regulate policies will be a disaster.” (March 4, 2009)
—Mark Skousen, former CIA analyst and columnist to Forbes magazine
According to Kudlow’s and Skousen’s view, which is standard, the market changed its mind three weeks after Obama signed his stimulus bill and has been saying Obama’s policies are terrific ever since.
The graph above adjusts the S&P 500 to $100 on first day Reagan’s term and Obama’s term. In four years, the stock market rose only 10% under Reagan, but rose 57% in 3.3 years under Obama (till April 10, 2012).
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