The answer is; immediately, a little; but after a few months, none.
Apparently, US Markets have rallied after every mid-term election since 1942, then they resume their path.
There’s more evidence that stock markets change Governments. Obama benefited from a collapsed market in 2008 – which reflected and affected the turbulent economic period. This time, he may benefit from a benign market performance.
An article in Time takes a look at whether the ascendency of Obama or Romney to President would affect the financial markets.
The conclusion from research is that the ascendency of anyone to President generates a small and momentary fillip in financial markets.
The only time markets can fall is when a Republican president is replaced by a Democrat President.
The article says the real drivers of the market over the next few months will be;
- whether or not Congress comes up with a quick resolution to the fiscal cliff [and]
- the economic situation in the rest of the world.
This is further evidence that politics affects very little, but reflects an awful lot.