Presidential popularity rises and falls with the stock market

While economists and financial analysts have long been interested in the impact of stock market changes on the financial decisions of individuals, especially at times of booms and busts, political scientists have just recently started to analyze how stockholding and market performance affect Americans’ attitudes and political behavior. A recent study by Christine Fauvelle-Aymar and Mary Stegmaier finds that U.S. presidential approval responds to changes in the U.S. stock market in predictable ways.