Worried about contested election? Here’s what went down in stocks during 2000 Bush-Gore battle

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If you're worried about the Dow and S&P crashing on a contested 2020 election, the Bush-Gore battle of 2000 is the only recent guide. Stocks did tank, but the reasons are complicated.

In the only recent precedent for a contested election, U.S. small-cap stocks bounced back from market volatility quicker than large-cap stocks in the S&P 500.Small-cap stocks are more levered to the U.S. economy. They also have less tech exposure than large caps, which mattered a lot around the dotcom bubble. For DataTrek, that also means it is easier to use small-caps to isolate the factors in late 2000 to see the impact that a contested presidential race had on U.S. equities.

A pro-business incoming president likely helped small-caps given their outsized exposure to U.S. economic growth versus large-caps. The S&P 500's gains were also more muted heading into year-end than the Russell amid its greater tech weighting and the overhang of weak fundamentals for that sector. The latter should snap back stronger once the winner becomes apparent, according to DataTrek, especially if Congress passes more fiscal stimulus to help spur U.S. consumer spending.From Election Day to the Supreme Court's decision in 2000, defensive sectors and asset classes, such as consumer staples and gold, outperformed as well. Sectors set to benefit from Republican policies – i.e. energy – also rallied through year-end.

 

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Trump is checking if Melania is voting for Biden.

In 2000, the Democrats were trying to win through the courts. Now, they are threatening to burn our cities. A slight difference.

Any news on Hunter Biden laptop?

Hes making sure she votes for him lol.

I'm not sure he knows how to spell his own name.

📌Trump’s Chief of Staff Mark Meadows not only forced a *coverup* by muzzling WH physicians from issuing COVID19 statement. 📌But also Meadows was doing it per the wishes of “what the president wanted”, implicating DJT himself as part of coverup!

he doesn't trust her egads!

Making sure she doesn't vote for Biden hahahaha. Funniest pic ever

Is he cheating looking at Melania’s answers?

Do we even know if that’s the real Melania? Because he travels with a lookalike a lot

NO CONTEST YOU IDIOTS... GIVE ME A DAMN BREAK.

Voted in 5 mins, Trump wins by a landslide.

$5 says she voted Biden2020

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