Obama Wins - What Now for the Markets?
Senator Barack Obama is now the President-Elect of the USA and one day later, the markets are down over 3%. Is this typical?
Since Reagan's reelection in 1984 (the first time the markets were open on election day), the Dow has been down 4 out of six times on the day after election day, not counting today. 3 of the 4 times were when the oval office switched parties. The 4th was upon Reagan's reelection. The most it was down was .9% after Clinton beat Bush I.
Since 1900, the Dow has been down 52% of the time the day after election day. The worst was down 4.5% the day after FDR was elected in 1932. The Dow had been up 4.96% the day before election day that year.
Leading the Dow to the downside today are:
- Bank of America
The good news? There is something to be thankful for. On average, the Dow has gained 1% from Election Day to Thanksgiving and has been up nearly two thirds of the time.
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