Cherry Picking The Diamonds From The Stock Market

Why does the stock market historically perform better during Democratic administrations?

See links below for evidence demonstrating that the stock market performs better during Democratic administrations than Republican administrations.

http://www.frbsf.org/images/pdfcharts/el98-19a.pdf

http://www.frbsf.org/images/pdfcharts/el98-19a.pdf

dpj5: Let's see if what you're saying is true:

As I look over the data, I see that the two of the three periods with the biggest gains (33-36, 97-01, and 49-52) involved Democratic Congressional majorities as well.

The data do not support your claim. Please try again.
John–Excellent points, but they also illustrate that the stereotype that Democrats favor regulation is not always true.

Ironically, the stock market has performed better for John Kennedy and Bill Clinton than it did for other Republican Presidents.

Interestingly though, the policies of Bill Clinton and John Kenedy were very pro-market, less government policies such as free trade, lower taxes and smaller government. Compare this to Richard Nixon (price controls, high regulation) and George HW Bush (tax increases) and you see that althought Clinton and Kennedy were Democrats, their policies were actually more conservative than Nixon and the elder Bush.

The current Bush has spent wildly and driven up the national debt to absurd levels which combined with too much government intervention (Community Reinvestment Act, Sarbanes-Oxley, etc.) have stifled the economy.