How will all this affect the economy and the financial markets? Elections and marketsThe effect of elections on financial markets is similarly capricious. The US stock market has tended to be lower before elections, before rising during and also after the elections. What it meansWhile elections are followed with great interest, these results show that their effect on financial markets is hard to discern, and at most short-lived. In the long run, however, what will ultimately matter for financial markets will not be short-term policies or electoral pledges, but the state of the economy.

Source: Wall Street Journal January 08, 2024 18:27 UTC