Stocks decline after election -- a market tradition
Wednesday, November 07, 2012 11:32 AM
U.S. stocks declined this morning, after a two-day advance in the Standard & Poor's 500 index, reported Bloomberg.
All 10 groups in the S&P 500 retreated today, with phone, financial and energy companies seeing the biggest losses. Analysts said investors' focus returned to the U.S. tax debate and Europe's debt crisis.
Historically, the S&P 500 has risen an average 0.9 percent on presidential election days since 1984. It has dropped five of of seven times the day after the election, according to data compiled by Bespoke Investment Group.
Obama's victory in 2008 spurred the biggest plunge ever for the Dow on the day after an election, but gains for American assets over the past four years have been among the best in the developed world.
Fed Chairman Ben Bernanke's actions to revive the economy after the worst recession in seven decades helped send the Dow up 67 percent in the past four years, Bloomberg reported.