Report: Wall Street is pricing in a 2012 Democratic victory

October 3, 2012

It's not just the polls that are favoring Obama: Wall Street appears to be anticipating a Democratic win as well, according to a new paper from LPL Financial Research.

The investment firm points out that there are certain industries that are more likely to react favorably to Democratic control of Washington—like health care facilities, construction, and life science tools—while others like coal, financial services, and oil are more likely to react favorably if Republicans are looking likely to win. 


(Source: LPL Financial Research)

"To track what the market has priced in for the Democrats’ odds of retaining the White House and Senate, we have taken the Democrats index and divided it by the Republicans index," LPL Financial explains. And the upward slope suggests that Wall Street is betting that Democrats will prevail. 


(Source: LPL Financial Research)
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