Red Hot or Icy Blue?

Talking Real Money - Investing Talk

Don McDonald

Education, Business, Investing, How To

4.5 • 811 Ratings

🗓️ 12 May 2026

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

Don and Tom tackle the strange psychology of politics and investing, exploring how Republicans and Democrats consistently perceive the economy and markets differently depending on who occupies the White House. Drawing on research from Spencer Jakab, the University of Michigan, and Dimensional Fund Advisors, they argue that long-term market performance has historically shown little correlation to presidential party affiliation, despite investors’ emotional reactions. The episode also features ...

Transcript

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0:00.0	Your guides to a really great financial future.
0:09.0	Tom and Don are talking real money.
0:12.2	Now, it may have been a few years ago, but I want you to think back.
0:16.0	Remember that great economy we had under President Bush, the second, Bush the second, not Bush
0:23.2	the first. Remember, remember that? And remember that terrible economy we had under Barack Obama,
0:29.6	his term? Oh, wait, wait, I'm sorry, wait. Oh, okay. Do you remember the terrible economy
0:36.5	we had under Bush and the great economy we had under Obama?
0:42.0	Hmm. Now I'm confused. Are you? Well, if you were a Republican, you thought the economy under Bush was great. If you were a Democrat, you thought it was terrible.
0:52.2	Obama? If you were a Democrat, you thought the economy under Obama was great. And the economy under, if you were a Republican thought it was terrible. Obama? If you were a Democrat, you thought the
0:54.3	economy under Obama was great, and the economy under, if you were a Republican, it was terrible.
0:59.3	We're going to talk about what Spencer Jacobs calls the color of money here on talking real
1:06.0	money. I'm Don McDonald, along with Tom Koch. So, who is right?
1:12.5	Was the economy great under Republicans and terrible under Democrats or great under Democrats
1:17.5	and terrible under Republicans, Tom?
1:19.8	And more importantly, how about the stock market thereof?
1:23.3	In other words, how do markets respond to Republicans or Democrats?
1:28.2	When it comes to investing, are you red, white, or blue?
1:31.9	There's a white option?
1:33.2	I only saw the red and the blue option.
1:34.7	I know.
1:35.0	I'm just checking all the boxes to make sure I'm covered either way.
1:38.1	It's a fascinating thing.
	...

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