So much for yesterday’s rally. With a decline of 2.2%, the DJIA is on pace for its fifth worse one day decline following a Presidential Election Day since 1900. The worst one day decline came in 2008 when the S&P 500 dropped 5.0% following Barack Obama’s election. Interestingly, while stocks have typically performed better under Democratic administrations, the five worst one day reactions to a Presidential Election all came following Democratic victories (gray shading).
The table below lists the five worst one day reactions to a Presidential Election since 1900. As shown, Barack Obama is currently on pace for the worst and fifth worst one day reactions, while FDR and Truman round out the bottom five. Earlier today we sent out a report to Bespoke Premium clients highlighting how the party winning the election and the market's performance the following day has impacted performance for the rest of the year. Clients wishing to view that report can click on the link below. If you are not yet a subscriber and wish to subscribe, sign up today.