Posted on 10/28/2020 5:30:37 PM PDT by rintintin
On the face of it, markets tumbling less than a week before the election doesn’t look like a good thing.
The Dow has fallen over 7% in the past nine trading days, with Nov. 3 just around the corner (the S&P 500 has followed suit, dropping roughly 6%). While spiking coronavirus cases and a lack of a stimulus deal are certainly driving some investor angst, does a pre-Election Day sell-off bode ill for Trump’s re-election?
“All else equal, a weaker stock market could certainly help Biden,” LPL’s Jeff Buchbinder tells Fortune. “On the margin [it’s] a little bit worse for President Trump based on history.”
Though pre-election drops of this magnitude aren’t unheard of, they are rare. The S&P 500 and Dow both fell over 3% on Wednesday, and according to LPL’s Ryan Detrick, “Only twice did the S&P 500 fall 3% or more within 6 trading sessions of the presidential election. 1932 and 2008. The incumbent party lost both times,” he wrote in a tweet Wednesday.
Detrick adds, “before [the] 2016 [election], the Dow fell 9 days in a row and the incumbent party obviously lost, so that time played out poorly for the party in power,” he told Fortune via email.
What perhaps has stronger historical precedent is a slightly longer time horizon: Buchbinder notes that in 20 out of the past 23 elections, it boded well for the incumbent when the S&P 500 was up three months before the election, while stocks trading down tended to favor the challenger. Stocks have traded roughly flat since three months ago, but turned lower on Wednesday: The Dow is down around 0.5% since August 3, while the S&P 500 is trading about 0.7% lower.
(Excerpt) Read more at msn.com ...
It’s deliberate, just like the second COVID wave.
To rise by Many percentages as soon as he is elected.
Smart people are pulling out just in case Biden wins....
No. Soros and company playing mind games.
I would think it actually is all the nonsense being fire-hosed out about a "second wave."
.
Ok, how does either a President Trump or a President Harris help the Dow?
Can either of them control a second CoVid-19 wave in Europe that’s causing them to lockdown again?
Are the American people(voters) smart enough to see what’s going on b4 Tuesday comes?
If Biden wins, companies are going to flee the country in droves, like the did during the Obama-Biden administration. We’ll be right back in the Obama Depression.
Nope. Just fear porn delivered by MSM.
Futures up 1% when the GDP comes out it’ll go up another 2%.
Actually a sign to investors what a Biden presidency would like for investors
Ditto ...
stop posting negative stuff.....we need to keep positive....
It is rigged. Chase was implicated in the Biden Soirée. They control Billions. Make no mistake, Wall Street wants Trump GONE!
No, it’s the market pulling back to minimize losses in case Biden wins.
The decline in the stock market is more a function of no ‘free covid money’ in the offing.
Gold has also declined and if Biden wins, we can expect gold to rise.
Sorry...but we MUST stay planted in Realville and not in the make believe world of Unicornville.
My beloved thinks it started with profit takers and then short sellers jumped into the fray.
I think it’s Soros and Friends.
Nothing is going to stop Trumpsters from voting for Pres Trump’s re-election, short of a God event.
May the Lord God spare us and grant us another 4 years of reprieve and Grace.
Amen.
Yep. As long as Biden is ridiculously ahead in the polls people will be scared. Not saying that’s good or bad thing. I see pluses and minuses.
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