A correction, which many analysts feel has been long overdue, could finally be coming at the end of Obama’s Presidency. The financial markets have been jittery lately after Republican candidate Donald Trump, who has been cast as an outsider won the US election of 2016. If history is of any guidance, then the financial markets could be in for a major correction. Let’s look at the history -

• At the very end of the Bush administration that lasted for eight years, the S&P 500 declined by 56 percent and the world faced a great recession.
• Before that, at the very end of Bill Clinton’s administration, the S&P 500 started declining and finally declined by 48 percent and the world faced dot com bubble burst.
• At the very end of Reagan administration that again lasted for 8 years the S&P 500 suffered a decline of 26 percent.
• At the very end of six years of Nixon administration, the S&P 500 declined by 50 percent.

As of now, the financial market seems to be cheering a victory by Donald Trump and the Republicans, who won both the House and the Senate; however, there are lots of uncertainties with regard to many policies of Donald Trump, so it is not very hard to imagine a market decline after almost 8 years of Bull Run. The S&P 500 is currently trading at 2174.