Election Day rally?

Do investors care who wins the U.S. presidential election?


Andrew Leonard
November 4, 2008 7:46PM (UTC)

Fifteen minutes after trading on the New York Stock Exchange opened, the Dow Jones Industrial Average was up 173 points.

Could hope be in the air?

Well, not according to one "strategist" quoted by the Financial Times.</>

Jeffrey Kleintop, strategist at LPL Financial wrote that the "uncertainty" caused if the incumbent party were to lose could result in "greater risk aversion for both corporate leaders in pursuit of earnings growth and investors in the form of valuations."

Whatever "risk aversion" currently exists in the marketplace is likely to do the global recession and evaporation of some $11 trillion in market capitalization that has transpired in the last year. The concept that it would have anything to do with the Republicans losing hold of the White House is absurd.

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However, I think Mr. Kleintop immediately realized how idiotic he sounded.

However, he continued: "It is possible we could be entering a new era, given the weak market performance of the current decade."

You think?


Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

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2008 Elections Globalization How The World Works Stock Market

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