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Election 2008, round two
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AT-October 2008-3
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Investors have issued a vote of no confidence in the U.S. stock market this year. But could stocks bounce back as the presidential election approaches?
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Detailed Description
As the U.S. presidential race heats up, the stock market has been stuck in a deep freeze.
Despite some dramatic twists, the contest between Sen. John McCain (R-Ariz) and Sen. Barack Obama (D-Ill.) was mired in a statistical dead heat through the early summer months. By the beginning of August, Obama had pulled ahead to a single-digit lead, according to several polls. Meanwhile, the Dow Jones Industrial Average (DJIA) fell 18.4 percent to a new year-to-date low of 10,827 on July 15. The index turned around over the next four weeks, however, to regain 7.5 percent, closing at 11,642 on Aug. 12.
While the U.S. economy is a major concern in any presidential election, the stock markets plunge in 2008 has thrust the issue to the forefront of the campaign.
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