Stock Market Could Get Bump After Election

Sacramento Business Journal| Mark Anderson, Staff Writer

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“No matter who wins the presidential election Tuesday, the stock market likely will get a bump up once election season finally ends”, said Keith Springer, president of Springer Financial Advisors in Sacramento.

A lot of the uncertainty about what will happen in this election is keeping the stock market from making moves, Springer said in his Friday market commentary.

“The election is holding things back more than anything. I expect a strong rally after Tuesday as investors lose their sense of uncertainty,” he said.

The market also has been held back somewhat since the first presidential debate between President Barack Obama and former Gov. Mitt Romney, where Romney showed he was a contender because he’s an opponent of economic stimulus.

While Springer himself is an opponent generally of stimulus, it is the stimulus that is keeping the markets up in this economic cycle. The market has priced a Romney win into the market for two months.

So no matter who wins, the market should get a boost for having some certainty.

And then outside of elections, the stock market seems to like the last quarter. Over the past 25 years, the law of averages favors an up market, Springer said.

“Since 1987, in virtually all cases, stocks have staged a big run from the October lows to the December high.”

Springer cites the S&P 500 Index, which has an average gain of more than 10 percent from October to December, with the low gain being about flat even to as high as 29 percent.

Springer does early morning financial market commentary daily on KTXL-TV Channel 40 and a radio show on Sundays on KFBK-AM 1530.