What was the average Dow Industrial Point during the Clinton Admin when the enconomy was supposedly booming...

Question

Alot of people at my work think there was so much "Good Times" during the Clinton reign, but I believe (politics aside) that our economy is in the "Boom" stage right now. I've never seen the Dow at 11000 and some change. I know the interest rate on home mortages was high then. I would like to know the average on it too.
Thanks

Answer 1

There is an interesting article in the Journal of Finance a few years ago. The article looked at stock market performance during democratic and republican administrations. During the 20th century, the stock market is about 9% higher during democratic administrations than it is during republican administrations. This is true in the first half of the century and in the second half.

The authors did not explain why this is true. However, they did rule out every objection that was put to them. For example, someone thought that the market might fall after a democrat is elected -- but that it would be attributed to the republican (and vice versa). They controlled for that -- and it turns out not to have an effect.

The more likely reason is that democrats pay as they go while republicans run up big deficits.

You mention that interest rates were high during the Clinton administration. This is not true. Rates fell, fairly steadily, from the early 1980s until recently. There were some ups and downs along the way. However, mortgage rates were considerably lower during the Clinton administration than they were during the first Bush administration or the Reagan administration.

Answer 2

In 2001 when Clinton left office the Dow was at 10,587.59 and was at 3,241.95 when Clinton took office in 1993. That is a 226% increase. Bush is so far 10,587.59-- 11,011.42 which is up only 4%. (politics aside)

Answer 3

Politics aside, my wife and I are working slobs. Our IRA's increased during the Clinton years but since that time, we have lost about half of what it was then. When the price of gas reaches $4.00 , we won't be able to invest again. We also have less help to put another child through college.

Answer 4

Politics aside huh? With your keen sense of unreality and thorough understanding of microeconomic theory, you should consider working for this administration.