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Chart of the Week: Dow Industrials Post Election

Posted By Barry Ritholtz On November 1, 2004 @ 11:52 am In Economy | Comments Disabled

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
Average_election_year_10_2004_2 [1]
Source: Chart of the Day [2]

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.

Random Items:
A steep decline in the dollar seems inevitable [3]
The economic limits of politics [4]
Highflier Google on right track for growth [5]
In an anti-Bush world, key backers [6]
Hell to Pay [7]
Will sagging Dow predict the winner? [8]

Quote of the Day:
Chance favors the informed mind.
-Louis Pasteur [9] (1822-1895)

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/11/chart-of-the-week-dow-industrials-post-election/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/photos/uncategorized/average_election_year_10_2004_2.jpg

[2] Chart of the Day : http://www.chartoftheday.com/

[3] A steep decline in the dollar seems inevitable: http://www.economist.com/printedition/displayStory.cfm?Story_ID=3329902

[4] The economic limits of politics: http://abcnews.go.com/International/CSM/story?id=193943

[5] Highflier Google on right track for growth: http://www.mercurynews.com/mld/mercurynews/10061842.htm

[6] In an anti-Bush world, key backers: http://www.csmonitor.com/2004/1101/p01s02-wogi.html

[7] Hell to Pay: http://www.msnbc.msn.com/id/6370525/site/newsweek/

[8] Will sagging Dow predict the winner?: http://www.delawareonline.com/newsjournal/local/2004/11/01willsaggingdowp.html

[9] Louis Pasteur: http://scienceworld.wolfram.com/biography/Pasteur.html

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