Since markets are not good at pricing non-binary events, it may not be until the very last day, markets react to the certainties or uncertainties of new President of United States.

Given the negative publicities surrounding Mr. Trump, it is more likely that markets may for a dive, if he is elected as the President. It is however, not just the negative publicities but some uncertainties too, especially in the trade front. Trump’s presidency could put serious doubts over Trans-Pacific as well as Trans-Atlantic trade deal. On the other hand, Hillary to the office (we are assuming Hillary as Democratic nominee) would basically mean status-quo.

However, in the longer run (presidency is of four years), initial jolt hardly matters. But at the same point is difficult to predict, how market would fair further on the upside after 7 years of bull market.

S&P Global market intelligence has presented a fantastic historical reference, which is worth to take a look-

In the past 70 years, United States of America has selected six Democratic President and six Republicans.

• Best performance of the S&P 500 came under Clinton Era, with 14.9% compounded annual growth rate (CAGR) followed by Obama with 12.4%. Compared to that, President Ford’s era returned highest with 18.6% CAGR, followed by Bush Senior at 11.9%.

• S&P 500 has returned negative only twice. Once during Nixon era with -5.1% CAGR and under George Bush with -4.6%.

• Average return under Democrats has been 9.7% CAGR and 6.7% under the Republicans.