What Markets Get Right (and Wrong) About Campaigns

It happens every year: a political race heats up, and investors become obsessed with how it’s playing in the equity market. In the U.S., that means that when a Republican pulls ahead, there will be voices saying that must be good for stocks. Sudden losses in a marquee industry like banks send analysts scrambling to find the policy or campaign pledge to blame. But while it makes for lively dinner conversation, it’s wise to take everything in this realm with a grain of salt. Simply put, the market