Ahead of the Bell: Stocks after elections

NEW YORK - Historically, in the ten days following presidential elections, the market has gained an average of 1.1 percent, according to figures dating back to 1896.

An examination of post-election market activity by The Leuthold Group shows that the gains tend to come when a Republican wins the White House. When a Democrat wins, stocks slip an average of 0.3 percent in the 10 trading days after the vote. Democrat Barack Obama on Tuesday defeated Republican John McCain to become the 44th president of the U.S.

But experts say investors shouldnt place much emphasis on historic market activity related to political events because broader economic trends could be more important.

Encima Global economist David Malpass says "the election wont cause a near-term improvement in the economic or market situation." Hes pessimistic about fourth-quarter economic growth prospects, but expects government policies and stabilization in the housing market to lead to "reasonable growth" in 2009.

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