Skip to content

Lefty Presidents Are Better For Markets

obama clintonDon’t you hate how right-handed Donald Trump is? Can’t we get an all-lefty general election again, like when lefties Barack Obama and John McCain squared off?

As we go full-throttle into the election year, people will have endless debates about how policies affect the economy. As a left-handed investor, I ask the question that really matters … are there any lefties running for president?

As you may be aware, we’ve had a left-handed president for 40 of the last 92 years, including four of the last five presidents. It’s hardly a coincidence — lefties are natural born leaders, charismatic, wise … stop, you’re making us blush.

I tallied S&P 500 index returns under different presidents. Even with Herbert Hoover’s atrocious left-handed start from 1929 through 1932, lefty presidents have seen annual S&P 500 growth almost 2 percentage points better than righty presidents. Under their 40 years of tenure, lefty presidents have seen price appreciation of about 7.2 percent per year. This compares with a paltry 5.3 percent during the 52 years of righty presidents.

Sadly, it’s a tough field this year for lefties. According to our research, Rand Paul is the only major left-handed candidate in either party. This is not the heyday of 1992, when Bill Clinton, George H. W. Bush, and Ross Perot were all left-handed.  But the market wasn’t really that great during the 90’s anyway, was it?

handedness take four

2 Comments Post a comment
  1. Gilbert W. Chapman #

    H m m m . . . What I found interesting is that with every six (6) presidents we have had one negative growth period . . . FDR to Nixon and Ford to Bush II . . . :)))

    Like

    September 30, 2015
  2. I think you’re onto something (I’m right-handed). But the stock market in the 1990s was pretty good, once Greenspan adopted the policy of suppressing interest rates long after the 1990-1991 recession ended. Also, in mid-1994, Treasury adopted (and the Fed followed) the Strong Dollar policy (it lasted until 2Q2002), and that policy usually is good for stocks and bad for commodities. Hmm. Look around at today. It is alleged in some quarters that Greenspan (until 3Q1998, at least) was following a closet gold price rule of $350 per ounce throughout the 1990s. And of course the tech stock bust in 2000 ended the stock market run. — Walker Todd

    Like

    September 30, 2015

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: