Is Clinton Casting A Pall On The Market?

If the President needs a buoyant stock market to bolster his popularity, the market needs a popular President even more. That's the gist of a recent Salomon Brothers Inc. analysis, which contrasts the good market performances associated with Presidents such as Roosevelt, Eisenhower, Kennedy, and Reagan (and Bush in the wake of the gulf war) with the generally poor showings of the Nixon and Carter years.

"Politically successful Presidents tend to engender strong stock markets," says Solly. "Politically weak ones suffer with a poor market." The firm finds that public approval ratings below 50% are associated with weak markets. And since it thinks Clinton's ratings are unlikely to exceed that threshold, it doubts that the bull market will return anytime soon.

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