In
the first article, Forbes states that the stock market increases when an
incumbent party won based on past statistics regardless of the political party.
For example, the average Stock Market return when an incumbent party won
increased 15.1% and decreased 4.4% when the incumbent party lost. Also, the
average Stock Market return increased by 7.6% during the president election
years overall. When a republican won, the average Stock Market returned
increased 10.3%. When a democrat won, it increased 3.9%. Based on these
statistics, I have learned that the presidential election have impacted the
financial markets in a negative way. During the presidential elections, the
stock market usually decreases. I think the stock market increasing during the
presidential elections is a good thing. It can also be a negative thing if it
goes down. It will either help continue to provide growth in our economy or end
up hurting our economy. In the second article, Tim Lucas states that the
prediction for the housing market during the presidential election is
uncertain. Since the stock market and economy are usually decreases, this can
also affect the outcome of the housing market. There is a lot of uncertainty involved
as both candidates running in the election are not a party of the incumbent
party. Experts say that the value of homes rises more slowly in election years
than in other years. In most cases, the presidential election is causing a
negative effect on the financial status of the housing market. I think this is
a negative thing and will affect our economy more and more as the years go on.
If there is a large decrease in the stock market and housing market, it will
cause a drastic effect on our nation’s financial status as a whole. This could
lead to many future issues.
http://www.forbes.com/sites/advisor/2016/08/02/how-will-this-election-affect-the-stock-market/#23207112334e
http://mymortgageinsider.com/how-will-the-2016-election-affect-the-housing-market-and-your-wallet/
