Wednesday, November 9, 2016

Reading the Election

No matter what you think of the election results, some caution is advised when watching the markets' reaction. Some historical post-election anomalies:
  • In 1932, when Franklin D. Roosevelt was first elected, the Dow Jones Industrial Average dropped 4.5 percent the following day. But the market roared higher in the year that followed.
  • The Dow fell 3.8 percent after Harry Truman’s surprise victory, in 1948, but the market finished the year up.
  • In 2004, George W. Bush’s re-election prompted a 1 percent rally, but the market did poorly during that term. 
  • Barack Obama has presided over one of the best bull markets in history, but his victories in 2008 and 2012 sparked drops of 5.3 percent and 2.4 percent.

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