In the past two weeks, the LPL Financial “Wall Street” September 20, 2012 Election Poll Index reflected a further move toward Democrats, setting another new high for Democrat-favored industries relative to those favored by Republicans. The market continues to increasingly reflect a status quo election outcome.
Over the two past week, the overall market rose. Most industries in both the Democrat and Republican indexes rose, but the strongest gains were seen in the Democrat-favored Homebuilding and Health Care Facilities industries. Republican-favored industries that saw solid gains last week were the Diversified Financials and Managed Care.
How It Works
To track what the market has priced in for the Democrats’ odds of retaining the White House and Senate, we have taken the Democrats index and divided it by the Republicans index. An upward sloping line suggests the market may be pricing in a rising likelihood of the Democrats retaining the White House and their majority in the Senate, while a downward sloping line suggests improving prospects for the Republicans.
Disclosure: Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and Young & Company Wealth Management Strategies, LLC are separate entities from LPL Financial.