Turmoil around the election would likely increase stock market volatility but the impact on stock market returns is unpredictable. Whether company political connectedness can create wealth for shareholdersThe impact of the political executive’s orientation or the phase of the electoral cycle on stock market movementsThe stock market impact of politically relevant events, such as wars, coups, etc. In some countries, stock market returns are greater when left-wing governments are in charge, while in others they are higher under right-wing governments. Stock Market Volume and S&P 500 Changes Rick Miller, Sensible FinancialSee if you can choose the one reflecting stock market surprise that Trump defeated Clinton. Indeed, if the events are likely to affect company profitability, they will affect stock market returns.

Source: Forbes October 30, 2020 20:26 UTC