(C) US Elections and the capital markets

Historically for the last nine US presidential mandates, the republican presidents have brought higher returns on the capital markets in the pre-election day month, that the democrats. During the past twenty years (since George H. Bush’s till nowadays), the democrats hold a unanimous advantage over the republicans in the investors’ trust during their first hundred days and first year in office. If the history repeats itself, we should expect that the current lead of Obama should raise the hopes of the US investors.

In the ongoing campaign the two presidential candidates were a bit late with their update on the economic program regarding the financial crisis. Due to the fact that the crisis is in its climax, I personally believe that the measures of the current George W. Bush’s office will play a much significant role, than the expectations of positive political shifts of the next government.