Could the Stock Market Predict the Election?
Since the mid-1900s, the stock market has acted as a relatively accurate predictor of the outcome of presidential elections. Following the FBI’s recent announcement in which they concluded that there was no new evidence found to warrant a charge against Hillary Clinton, the Dow Jones Industrial Average soared to its highest close since October 10 on Monday combined with the dollar jumped in value. This comes after weeks of losses within the stock market, which saw the S&P 500 endure its longest losing streak in over 35 years. A number of investors and analysts said that the announcement improved Clinton’s chances of winning the election. A Donald Trump victory tonight would bring about a large level of uncertainty among investors, which would increase risk among investors and decrease stock market activity.
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