This chart of the Dow below depicts the markets behavior post-Presidential election. It is concerned not with partisan party politics but with rather incumbent versus challenger returns.
Dow Industrials Post Election
Source: Chart of the Day
Why markets behave this way: When Incumbents lose, its typically because of a weak economy; That leads to more weakness – at least until there is a comfort level with the new policies of the President-elect.
A steep decline in the dollar seems inevitable
The economic limits of politics
Highflier Google on right track for growth
In an anti-Bush world, key backers
Hell to Pay
Will sagging Dow predict the winner?
Quote of the Day:
Chance favors the informed mind.
–Louis Pasteur (1822-1895)