The stock market has achieved better returns in Joe Biden's first 100 days as president than under any other chief executive since the end of World War II, the Insider reported Tuesday.
S&P 500 returns since Biden was elected are almost 25%, beating the previous record of more than 20% for 100-day success held by President John F. Kennedy, according to data provided by JPMorgan. President Donald Trump had returns of just below 15% at this point in his administration..
The data also showed that average S&P 500 return under Democrat presidents in the first 100 days was more than double the average return of their Republican counterparts since the end of World War II.
However, some analysts downplayed the record, with National Securities chief market strategist Art Hogan telling CNBC that "Anyone that became president this year was going to have a pretty significant tailwind. You're coming into a point where you had to just not mess things up, and hopefully improve on what it was you needed to get done."
CNBC went on to explain that no president had a tailwind at all comparable to what Biden was handed in January, as Congress already had appropriated more than $3 trillion in stimulus, and the Federal Reserve had relaxed policy to the loosest point in its history.
This means more than $5.3 trillion has been spent on COVID-related relief efforts, and the Fed’s bond purchases have almost doubled its balance sheet to nearly $8 trillion.
Forward-looking investors have even more reason to plow money into the market due to plans by Democrats to spend trillions more on a broad infrastructure plan.
In addition, there is growing hope that growth will continue as more of the economy revives, with the U.S. continuing to vaccinate some three million people a day.
However, JPMorgan sounded a warning to its clients, saying that while Biden's policies since his inauguration had benefited the market, proposed policies were "no longer so unambiguously positive."
Of particular concern is Biden's intention to nearly double the capital gains tax rate to as high as 43.4% for wealthy Americans.
The JPMorgan team said there could be a drag on equities this year due to tax hikes on corporations and individuals to fund infrastructure and social spending, combined with a tightening regulatory environment.
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