Whether stocks will rise or fall from here depends on who investors think will win the election.
When stocks rise between July 31 and October 31, people are generally of the mind that the incumbent party will win. If equities fall, then the thinking is that a new party will take over, said Sam Stovall, managing director, U.S. Equity Strategy of S&P Global Market Intelligence.
Again, it relates to uncertainty — as the saying goes, better the devil you know than the devil you don't.
This actually plays out in the polls, said Stovall. In 82 percent of the times that markets have climbed during August and October, the incumbent party has won. In 86 percent of the times the market has been down, the replacement party has won.
At least for now, it appears that the market is expecting a Trump win. Since July 31, stocks have fallen by 0.64 percent.
Investors may want to root for a Clinton win, though. Historically, in the first year of a new president's term, markets climb on average by 8.2 percent, according to the S&P. When a Democrat wins, though, the S&P 500 sees a much bigger gain — 17 percent on average versus a decline of 1.8 percent during a Republican's first term.