Why has the Dow Jones done so well under the two recent Democratic presidents?

low interest rates and QE. The stock market was very healthy for most of W's presidency, though.

Continue giving money to banks.

Further proof that the Republicans failed policy under their God, Ronald Reagan, are inferior to President Obama's economic policies. The rich don't do shite for this country.

LINK

This details the start of the QE program (at the very END of W's presidency) and it's effect on the market. The US president has no control over the Federal Reserve and their actions, therefore any gains or losses in the stock market cannot be credited with Barack Obama or his policies. The Fed's policy of easy money has artificially pumped the stock market up.

Bill Clinton just happened to be president when the Dawn of the Internet Age came upon us and transformed commerce. The market became enamored with anything with a "dot com" behind it. Investors threw massive amounts of money into companies that developed an online presence whether they produced a profit or not. Evidence of this happened when the tech bubble burst at the end of Clinton's presidency. While the internet age was taking hold during the 90's, the subprime mortgage industry grew 100 fold due to Clinton's repeal of Glass-Steagal Act and fundamental changes to Jimmy Carter's Community Reinvestment Act of 1977. Close examination of these actions show that the government made banks abandon sound lending practices and forced them to give mortgage loans to people who couldn't really afford them. Through Freddy and Fannie, the government acted as a backstop to defaulting loans. Literally these companies could not lose. These actions grew balance sheets for banks and mortgage companies pumping stocks further up.
Also, during this time period, companies like Enron and WorldCom showed that certain liberties could be taken in accounting practices, leading to further stock pumping. How many companies that engaged in practices like this and got away with it?

So your basic premise that "Democratic presidents are engaging in policies that are good for stocks" is a somewhat faulty argument. A truly objective look proves that

TARP was started under GW. The market turned in March of '09. To say that Obama stopped a meltdown is just ignorant.

Ton's of QE via the Fed

Banks are sitting on mega $$$ in reserves. That money is gotta go somewhere. So its flooding the markets, driving up prices.

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Why has the Dow Jones done so well under the two recent Democratic presidents?

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We're talking about two radically different economies.

Under Clinton, we created 22 million new jobs, had historically low unemployment, and enjoyed an increase in the nation's median income.

Under Ogump, we have the lowest labor force participation rate in decades and the people who are lucky enough to have full time jobs are getting paid less.

Under Clinton, the stock market was reflecting a fundamentally strong economy (no matter how much or how little credit you want to give to him). Under Ogump, the stock market is a mirage resulting from years of cheap money being given to people who simply move that money around instead of producing anything of value.

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jeff5891

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These "massive gains" are simply "bubbles" that are artificially made, and rich people will get richer and the "bubble" will burst as it always does and then taxpayers as usual will be charged to make repairs to whatever sector this bubble formed in.

There is a big difference between "Wall Street" and "Main Street". A healthy Wall Street has little to do with a healthy economy which would benefit all.

The middle class which lives on "Main Street" is not doing well, is shrinking, and during this Dem presidency has seen its personal wealth level set back to Dem prez Carter's term.

Beginning with O's term the Fed has pumped 30+ billion monthly, then as O's recovery failed,that amount was raised to 80+ billion a month into the economy. This money is not based on anything; it is a "debt" and is being financed by the issuance of bonds which China has been buying since O took office. During O's first term China was provided a direct line to purchase this "debt", an arrangement this is unprecedented in the history of the U.S.

Both the artificial low level of interest rates and the pumping of worthless money into the economy aside; Wall Street's wealth is made on "bubbles" formed in various sectors of the economy.
It is no longer tied to a manufacturing base as it always had been. The final blow to an economy based on manufacturing came when Clinton gave permanent status for most favored nation to China finishing decades of destruction of an manufacturing economy by Democrats.

"bubbles" in the sectors of the economy have and will always burst. The housing industry/finance "meltdown" was simply that "bubble" bursting. Bush warned the Dems running Freddie/Fannie 18 times in one year of this, because the decisions Dems made which caused the bubble aren't based on any sound financial principles.

Mind you also if a crony of the Dem prez a big contributor knows what the prez will do, they can invest accordingly. For example the denial of Keystone has less to do with appeasing the eco-lunatics than with appeasing big investor/donors who would lose money if the method of transporting that oil would change.

The only thing to be learned is we have a bubble economy, thanks to the Dems, and when the bubble forms rich investors will make lots of money, and when it bursts the taxpayer will be called upon to pick up the pieces, duh.

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Is there anything that the next republican pres can learn from the experience of these two dems to keep this trend going?

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Throw a shite ton of fake money into the market?

Could have something to do with both Clinton and Obama started off with mediocre to shitty economies. Also don't forget the Internet was invented by Al Gore and you had that boom under Clinton.