I found this article and thought it was a very interesting piece on how little the elections actually impact the market. I always assumed that the markets may fluctuate because of president's personal interests and expected policies but the author argues that there is actually no real correlation between presidential elections and the stock market's activity.
I agree with Mike that this is an interesting article. However, I imagine the elections have more impact on other markets. The stock market is always flucuating, but what effect does the election have on the more stable markets? Or what effect does the market have on the election may be a better question.
ReplyDeleteI think that this article makes an interesting point about the correlation between the market for equities and presidential elections. However, I think there is something to be said about investor tendencies around election time. From a behavioral finance perspective, it is reasonable to assume that investors are going to review the policies of the front runners and make decisions based on them. While the aggregate effect on the stock market may not reveal any correlations, I feel as though it is a reasonable assumption that investors will adjust their investments and exposure according to the most likely scenario.
ReplyDeleteI agree with Ryan that investors will adjust their investments according to the scenario
ReplyDeleteI agree with Rachel.
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