Stock market reaction to Obama election

Historically, is is not unusual for the stock market to slide after the election of a Democratic president. The fact that it was the biggest slump ever after an election has to be taken in the context of an extremely volatile market.

On the previous day, we also saw a record surge in the market for a presidential election day.

There was a bad report on jobs and service industries, but it's really hard to analyze what happened between these two days. Most of this volatile activity is due to day and swing traders who often trade according to patterns on charts or graphs known as "Japanese candlesticks." There may be little actual relationship to the election itself.

Americans generally turn to the Democrats during tough economic times. The best example of this was during the Great Depression. Bill Clinton also appeared to have benefited from the recession that hit during George H.W. Bush's term. There appears to be a general perception that Democrats will do more to help struggling workers and families, and those who are down and out.

Reuters
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Reuters - 11 hours ago
By Joanne Frearson LONDON, Nov 5 (Reuters) - US stock futures were down on Wednesday, pointing to a lower open on Wall Street, as investors focused on the ...
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