From Bush's inauguration in 2001 to late 2007, the Dow rose from 10,000ish to 14,000ish. It's only dropped in the last year, and in particular in the last few months, as it became more and more likely (based on approval ratings and polls) that the next President was going to be a Democrat.
It wasn't until a month before the election that the Dow crashed back below the 10,500 mark which it was at when George W Bush took office in 2001.
OK, now I don't believe that's really the only thing going on, obviously there's a zillion other factors which are more important than just Republicans vs Democrats. But you asked how you could explain the "huge drop under Bush" despite traders being more confident when the administration is Republican, and I gave you an explanation.
It wasn't until a month before the election that the Dow crashed back below the 10,500 mark which it was at when George W Bush took office in 2001.
OK, now I don't believe that's really the only thing going on, obviously there's a zillion other factors which are more important than just Republicans vs Democrats. But you asked how you could explain the "huge drop under Bush" despite traders being more confident when the administration is Republican, and I gave you an explanation.