Betty Liu on election-year market trends

Betty Liu, Executive Vice Chairman for NYSE Group, explains:

Do election years have an impact on the markets?

So, the short answer is it depends. There's lots of factors that affect the markets, right. But there are some trends. So, the S&P has had its best performance in the year before elections and the second-best performance on election year. Now since 1928, we've had 23 election years and the S&P has had negative returns only four times in that duration.


How did markets react in the 2016 elections?

Well, surprisingly, the markets actually rallied the day after the elections, and that's pretty rare. Because of the last 21 election days, the markets have only rallied six times.

Are the US and China headed for a new Cold War over technology? Judging by what we heard a few days ago at the Munich Security Conference, a major trans-Atlantic gathering for world leaders and wonks, you'd certainly think so. US, European, and Chinese officials at the event all weighed in with strong words on the US campaign against Chinese 5G giant Huawei and much more. Here are the main insights we gleaned from the proceedings:

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A few weeks ago we first took a look at how a bat (possible origin of the coronavirus) could have a butterfly effect on the world economy.

China accounts for about a fifth of global economic output, a third of global oil imports, and the largest share of global exports. That means that any time the Chinese economy shudders or stumbles, the shockwaves circle the globe. And China is most certainly shuddering.

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Bloomberg takes the stage – Tomorrow's Democratic debate will be the first to feature media tycoon Mike Bloomberg, who in recent weeks has thrown hundreds of millions of dollars behind an ad campaign designed to position himself as a viable, moderate candidate who can beat Trump. As his support in national polls has climbed to nearly 20 percent, Bloomberg – who largely sat out the earlier rounds of Democratic campaigning – has come under attack for sexist comments in the past as well as his support, as NYC mayor, for "stop and frisk" policing tactics that disproportionately targeted people of color. Bloomberg will immediately be at war not only with the moderates whom he wants to displace – Pete Buttigieg, Amy Klobuchar, and Joe Biden – but especially with the front running left-progressive Bernie Sanders. It will likely be quite ugly and we're certainly tuning in.

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