Prices toppled more than two percent the day after the presidents reelection. But thats not unusual for Mr. Obama in 2008, the day after his first win, the market lost 5.3 percent. Thats a huge amount by any standard. Indeed, only ten days in this century over more than 3,100 trading days- suffered a sharper, deeper daily loss. In fact, eight of these ten happened in 2008, between September 29 and December 1.
Lest we think that financial markets suffering drastic changes is par for presidential elections, consider the record, since President Reagans reelection in 1984. The diagram shows just moderate changes for Election Day and the day after. And while the market reacted with declines for every president, none were the extend that greeted Mr. Obama.
(The NYSE was closed on presidential election days until 1984.)
DJIA -2.36 percent
NASDAQ -2.48 percent
S&P500 -2.37 percent
