Financial Perspective – U.S. elections: how will the stock market react?
With the U.S. presidential election coming up in just a few days, what can history tell us about stock market behaviour at a time like this?
On November 5, American voters will elect their next President, along with the 435 members of the House of Representatives and 34 of the 100 people who form the Senate. What will the markets be doing on the day after the results? As always in the world of finance, past performance is no guarantee of future performance and it would be rash to start making predictions. Nonetheless, here are a few historical facts that shed some interesting light on this question…