My post titled Stock Market under Obama and Trump of June 2017 attracted a number of comments from an anonymous reader. While I usually don’t respond to posts by readers who do not identify themselves with a name (Hopeyouarentafinancialadvisor), this one had enough substance that I not only thought it warranted responses, but further research and discussion here.

My argument in June was that, yes, during Trump, the economy, as measured by stock market value increases, has been booming, but I wanted to bring back some credit to Obama, where that boom actually had started back in 2009. I used this chart to illustrate that point.

In subsequent exchanges, the reader said I picked a random starting date for both presidents. Well, the day of inauguration is not all that random. The reader suggested I should use the dates of election, and it would show a different picture. So let’s do that and add to this chart:

Source: Macrotrends.net

My point of the original post was that Trump could not alone take credit for a rising stock market. The stock market had been rising since 2009 at a steady clip, without major dips that we experienced in the Bush years. My point also was that Obama entered during freefall, whether you look at his date of election or inauguration. Yes, if you look at the election dates, due to the timing of the Bush freefall, and subtract the two, the election date difference is smaller than the inauguration date difference.

And yes, looking at the graph 6 months later, one year into the Trump administration, it is visible that there is an inflection point at Trump’s entry and the curve has increased to a steeper slope, particularly in the last six months. I give credit to Trump’s approach of opening regulation and pro-business general policies.

However, if you look at a president’s first year in office alone with respect to the Dow, measuring in percentage gains, not point gains, there is a surprising statistic. Trump is only third in history, beaten by FDR and – surprisingly – Obama. This was well illustrated in the USA Today of January 22, 2018:

Here is another view that shows that Obama’s gain during his first year in office was larger than that of Trump. I know Hopeyouarentafinancialadvisor will argue that this should have been done using election dates rather than inauguration dates, and the numbers would be smaller. However, skewed smaller, because since Obama took over during a freefall, we certainly can’t penalize him from the continued drop before things, thankfully, got caught on the bottom.

So I reassert – given the economic conditions of where Obama started – in a mess – he did alright. I wish it had grown faster, too.

Trump keeps saying he took over a mess. He did not. He took over when things were going quite well, and had been going upward steadily for 8 years. That’s not a mess, even if Hopeyouarentafinancialadvisor might argue that it could have been better.

The real numbers, of course, will be those of the next few years under Trump. Will this trend continue? What will a full four or eight years show?