Stock Market as Barometer of Policy Success

By request, here is an update to the chart showing market performance under Presidents Trump and Obama. Note: I don't think the stock market is a great measure of policy performance, but some people do - and I'm having a little fun with them. There are some observers who think the stock market is the key barometer of policy success.  My view is there are many measures of success - and that the economy needs to work well for a majority of the people - not just stock investors. However, for example, Treasury Secretary Steven Mnuchin was on CNBC on Feb 22, 2017, and was asked if the stock market rally was a vote of confidence in the new administration, he replied: "Absolutely, this is a mark-to-market business, and you see what the market thinks." And Larry Kudlow wrote in 2007: A Stock Market Vote of Confidence for Bush: "I have long believed that stock markets are the best barometer of the health, wealth and security of a nation. And today's stock market message is an unmistakable vote of confidence for the president." Note: Kudlow's comments were made a few months before the market started selling off in the Great Recession. For more on Kudlow, see: Larry Kudlow is usually wrong And from White House chief economic advisor Gary Cohn on December 20, 2017:

For fun, here is a graph comparing S&P500 returns (ex-dividends) under Presidents Trump and Obama: Blue is for Mr. Obama, Orange is for Mr. Trump. At this point, the S&P500 is up 31% under Mr. Trump - compared to up 63% under Mr. Obama for the same number of market days. Note: There was a market sell-off during Mr. Obama's third year, so the market performance might be closer over the next 60 days.

Source: Calculatedriskblog.com

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Stock market • Barometer • Stock market • Stock market • Barometer • Economics • Stock trader • United States Department of the Treasury • Steven Mnuchin • CNBC • Stock market • Motion of no confidence • Mark-to-market accounting • Lawrence Kudlow • Stock market • Motion of no confidence • Stock market • Barometer • Stock market • Motion of no confidence • President of the United States • Great Recession • Lawrence Kudlow • White House • Economics • Gary Cohn (investment banker) • President of the United States • Barack Obama • Donald Trump •