Chart of the Week: Dow Industrials Post Election

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.

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Will sagging Dow predict the winner?

Quote of the Day:
Chance favors the informed mind.
Louis Pasteur (1822-1895)

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