Stock Market Under Obama – Know More Interesting Facts

Elected as the 44th president of the United States of America and the first African American to hold that position, president Barack Obama made significant reforms to the economy that directly influenced the stock market during this tenure. In his first term, the stock market grew to 83% and 53% during his second term. During the George Bush administration, the country had been faced with a series of events that led to the stock markets’ bearish trend. Read further to know more about Stock Market Under Obama.

1. In a bid by sellers to minimize their losses, the stock market regulators would have witnessed a panic selling situation after the September 11th, 2001 terrorist attack stock market regulators New York stock exchange and Nasdaq had to implement a 6day shut down a move which saw them make losses of approximately $1.4. 
2. The economic crisis of 2007-2008 was caused by lenders and financial plans for homeowners that could not afford to pay back their mortgages. This was due to the low-interest rates and low lending standards imposed in a bid to make the affordable housing scheme come to reality. 

annual losses were estimated to be approximately 5.6% annual. 

After the election of President Barack Obama into office, the following reforms were made to help heal the ailing economy that subsequently affected the stock market

1. To help restart job growth Obama initiated a tax relief that would help families that were hit hardest, permanent tax cuts for families with College and University students, and finally those with jobs generating a stable income. 
2. The creation of stress tests helped the government explore and anticipate future economic vulnerability while coming up with appropriate solutions. This saw banks raise approximately $66 billion from private markets in one month. 
3. The recapitalization of financial systems saw a positive return of $30 billion withstanding the downturn and eventually borrowing of loans and financial plans were reintroduced. 
4. An estimated $1 trillion was raised in response to London’s G-20 crisis meeting summit that would go towards the restoration of jobs, credit, and sustainable growth globally. 
5. A regulation on banks was imposed to ensure all transactions not related to the traditional banking services would be prohibited therefore eliminating risky proprietary transactions. And protecting customers from financial abuses witnessed during the crisis of 2008. 
6. The signing and implementation of the recovery and reinvestment act of 2009 saw the government’s bid to salvage the already ailing economy and administer it while overseeing new reforms and projects affecting taxes, job creation, and insurance reauthorization. Other bills were later signed in 2010 and 2012 with the same. 

Following the various efforts and reforms that re-established the stock market, there was significant growth in 

1. An increase in share prices in companies in the telecommunications and information technology industry. Companies such as Netflix, Amazon Google, Microsoft, and meta grew in response to the technological advances made during the Obama administration era. The government itself has incorporated the use of technology in day-to-day operations. These shares grew and have earned investors over 150% in profit returns. 
2. Banks were hard hit during the crisis of 2008 in retaliation the government imposed new and stricter rules to regulate the issuing of loans and financing plans for different reasons such as housing. 
3. The bailout signed by President George Bush has seen the subsequent administration collect over 250 billion in profit from hedge funds and investment brokers who sought the bailout money in form of interest incurred over time. 
4. The stock market was estimated to be 6594.44 at the beginning of President Barack Obama’s tenure; he was able to grow it to 19974.62 as measured by the Dow Jones industrial average. 
5. The unemployment rates were the greatest concern at the beginning of his term in office; an average of 80000 people were losing their jobs daily. The Obama administration sought to create more jobs through manufacturing, technology industry, and sustainable energy industry, a move that has continued to benefit many Americans to date. 

After his tenure as president, we’ve had two elections that have seen two presidents in office but had different progress and made reforms that have affected the stock market. A pandemic witnessed in 2020 also hit the stock market. 

Under President Donald Trump

1. The whole world was hit by a pandemic that saw panic selling of stocks due to uncertainty caused by the pandemic. COVID 19 affected the medical industry where the staff was constantly overworking, citizens were stuck in lockdowns, and restricted movements, a move that saw most people lose their jobs. The stock market suffered and inflation rates rose. President Donald Trump’s administration had to work with researchers to look for a vaccine to manage the spread of the virus. 
2. The Dow Jones industrial average made new 126 highs. This came in second after Bill Clinton’s 263 in his 8-year tenure and 123 in president Barack Obama’s tenure. 

Conclusion. 

President Barack Obama left the stock at an all-time high and the succeeding administrations have not been able to either maintain or grow these prices, partly because of the major events that have hit the world influencing the stock market as a result. 

Recovery may take a while and investors should continue to exercise caution while executing trades due to the volatility of the market in the Russian Ukraine invasion of 2022