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The Stock Market Could Well Determine Election Outcome

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Harrison Roger
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Determine Election Outcome ?

Research on what determines the outcome of elections is wide and deep, ranging from whether a war is going on, to GDP growth, to social issues, and a host of others.  This year, perhaps more so than any other, the market could determine the outcome of the presidential election.

Also see  Which Industries Like Obama, And Which Do Not?

Determine Election Outcome  - The S&P 500 and Presidential Elections

As a start to the discussion, here's a look at the performance of the S&P 500 since 1950, color-coded by whether the year was an election year.  In blue are election years; in gray are all other years.

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Unsurprisingly, it's difficult to tell from the broad picture how presidential elections and markets...

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Roger is an economic adviser and active angel investor. He owns various economics firms. His work allows him a diverse group of clients across the globe, including the United States, Europe, and Asia. He holds a Ph.D. in business economics.