Election Results & Market Returns.

Bespoke Investments has looked at election returns since 1900. Here are some of their findings:

1. The Dow Jones Industrial average return from election day through year end is between 1.6% & 1.9%.

2. Investors hoping for a Santa Claus rally should be pulling for McCain.
Democrats elected = -.96% average decline.
Republican elected = +4.14% average gain.

3. Best returns since 1980 were Bill Clinton 1996 6.04% and 2004 George Bush 7.45%.

4. Worst returns since 1980 were Ronald Reagan in 1984 - 2.62% and in 2000 George Bush - 1.50%.

5. Average Return since 1980 has been 2.25%

Please note though that you have to go back to the Depression to see a market that has experienced declines like we've seen this fall. In 1932 the market declined - 7.20% after FDR was elected and gained 1.83% after his re-election in 1936.

Source: Bespoke Investment Group. 11/03/08: Equity Performance Following Election Day.
Here is a link to their weblog. http://www.bespokepremium.com/

*Currently Long various Dow Jones Industrial related ETFs for various client accounts.