Republicans, Democrats, and the Stock Market

A reader asks me what I think about this graphic from the NY Times, which purports to show that the stock market does better when a Democrat is in the White House.

My interpretation: It is meaningless.

I can imagine good reasons for being a Democrat (see this link), but stock market returns are not one of them. First of all, the stock market is hardly a barometer of economic well-being. Second, as David Backus wisely points out, the President's policies are only a small part of what drives the economy. Third, it is nearly impossible to get the timing right to do this kind of comparison. …