Stocks had their worst day of the year Wednesday after President Barack Obama was re-elected, and slipped further on Thursday. Investors are worried about a package of tax increases and government spending cuts that will occur unless Congress acts by the end of the year.
On the day after presidential elections since 1900, the stock market has gone up 13 times and down 15 times.
Overall, the Dow has performed better under Democrats than under Republicans. It has gained an average of about 13 percent a year with Democrats in the White House compared with 6 percent under Republicans.
That pattern also holds true over the past generation. The Dow gained about 20 percent a year under Democrats Bill Clinton and Obama, and an average 12 percent a year under Republicans Ronald Reagan, George H.W. Bush and George W. Bush.
The stock market's low after the Great Recession came in March 2009, two months after Obama was sworn in, and a historic rally followed. Obama is averaging about a 9 percent annual gain in the Dow, even after this week's sell-off.Associated Press