10/11/2012 11:26 am ET Updated Dec 06, 2017

52 Reasons to Vote for Obama: #18, The Stock Market

Whether you're PRObama, NObama, or still undecided, 52 Reasons to Vote for Obama gives you all the information you need to share with friends, debate with relatives and decide for yourself as we head toward one of the most important elections of our lifetime. I'll post a new reason in random order every Monday through Friday from now 'til the election.

In the first quarter of 2012, the Dow Jones Industrial Average and the S&P 500 posted their best quarters in nearly fourteen years, while the NASDAQ had its best quarter since 1991. The Dow is currently about double the level it was in March 2009, shortly after Obama became president. Since Obama became president on January 20, 2009, the stock market has risen at an annual rate of 16.4 percent, even after adjusting for inflation. Obama has presided over the fifth best stock market record of any president, behind Franklin D. Roosevelt, Calvin Coolidge, Bill Clinton, and Dwight D. Eisenhower.

The Dow Jones Industrial Average has surged 60 percent since Barack Obama was inaugurated as president more than three years ago. Obama is one of only five presidents to see the stock market increase more than 50 percent during his first three years in office.

What's more, the stock market performs better under Democratic presidents than Republican. Looking back fifty years, we see annualized returns of 11 percent under the past twenty-three years of Democratic presidents since Kennedy, compared to only 2.7 percent under the past twenty-eight years of Republican presidents.

In fact, according to Professor Robert Prechter of the Socionomics Institute, in a March 2012 study entitled, "Social Mood, Stock Market Performance and U.S. Presidential Elections: A Socionomic Perspective on Voting Results," Obama is headed for a landslide reelection. Prechter's research shows that social mood as reflected by the stock market is a more powerful predictor of reelection outcomes than economic variables such as GDP, inflation, or unemployment:

We define a large positive stock market change as a net gain of 20 percent or more in the preceding three-year period... We conclude that a large net positive stock market change during the three years prior to the election is highly likely to be associated with a landslide victory for the incumbent.

I'm a Taurus... why argue with the bulls?

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