President Joe Biden has seen historic growth in stocks since winning the election, with markets outperforming the gains of his predecessors going back to Harry Truman. 

Since Election Day, the S&P 500 has climbed 26% through Friday, making it the best 220-day stretch for stocks after a presidential election since World War II, according to investment research firm CFRA.

The only administration going back to World War II to come close to Biden’s gains was that of John F. Kennedy, who saw an 18.3% rise in the same time span. 

The “Biden boom” is thanks to a recovering economy and massive stimulus from Washington and the Federal Reserve, factors that were underway before Biden took office. That’s continued to help propel the stock market. Another big stimulus package this spring, the COVID-19 vaccine rollout and an infrastructure plan under the Biden administration have also added to investor optimism, analysts say. 

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To be sure, presidents don’t have much influence on the stock market. Still, the recent gains typically bode well for Wall Street for the rest of the year, financial experts say. 

“Usually if you start the year off strong in the stock market, the question then becomes whether all of the good stuff is behind us? And the answer is we still have something to look forward to,” says Sam Stovall, chief investment strategist at CFRA. “It likely won’t be as good as the first half, but I’ll take it.”

What’s next? 

Historically, the last six months of the first year of a new president’s term is characterized by steady gains. Since 1945, the S&P 500 has posted an average gain of 5.1% in that span and has been positive 68% of the time over that stretch, data from CFRA shows. 

After one of the best starts to a bull market in history, the recent record rally is showing signs of fatigue. While the S&P 500 has surged more than 80% since hitting a low in March 2020, additional stock gains in the second half of 2021 are likely to be more modest, according to market forecasters. 

The second year of a bull market tends to be choppier, with positive but moderating returns and periodic pullbacks.

“A strong economic recovery lies ahead as the reopening continues, bolstering a very strong earnings outlook,” Jeff Buchbinder, equity strategist at independent broker-dealer LPL Financial, said in a note.

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