Election Day to Inauguration Day Returns and Beyond
From Bloomberg via The Big Picture
The Dow Jones Industrial Average fell
14 percent between Barack Obama's election and Inauguration Day,
the biggest decline ever. The second-biggest drop gave way to a
75 percent rally in 1933.
The CHART OF THE DAY compares the Dow’s retreat since Nov. 4 with the 13 percent slide between Franklin D. Roosevelt's election and his inauguration on March 4, 1933. The red line goes on to show the Dow’s surge during FDR’s first 100 days. No other new president since the beginning of the last century produced gains or losses of 10 percent or more in the analogous periods.
I'm not saying that the market is going to rise 75% over the next several months. I would be shocked if it did. The market was insanely cheap in 1932 whereas today it is merely attractively inexpensive.
However, since everyone is making comparisons to the Depression...
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