Where Does The Trump Rally Rank?

In honor of President’s Day this Monday, we’ll look at how the S&P 500 has done the first month after various presidents took office. Going back to 1950,* there have been 12 presidents, and using only their first-term returns, the best first month ever for the S&P 500 was a 6.8% bounce after President Johnson took office in November 1963. This is extremely surprising, given this rally took place after President Kennedy was assassinated. The worst first-month return was a 14.4% drop after President Ford took office in August 1974.

Where does President Trump rank? Take note that he won’t be in office one full trading month until Tuesday’s close, so there are still two full days to go, but as of now the S&P 500 is up an impressive 3.3%.

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Per Ryan Detrick, Senior Market Strategist, “Equities had a big bounce after President Trump won the election and have continued to add after the inauguration. Although there are many questions about the new president’s policies (many of which we analyzed here), equities markets are clearly taking the mounting questions in stride and looking ahead to better times.”

Have a great three day weekend everyone!

IMPORTANT DISCLOSURES

*Please note: The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1950 incorporates the performance of predecessor index, the S&P 90.
Past performance is no guarantee of future results. All indexes are unmanaged and cannot be invested into directly.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

The economic forecasts set forth in the presentation may not develop as predicted.

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The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

This research material has been prepared by LPL Financial LLC.

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