The Washington Post

Report: Wall Street is pricing in a 2012 Democratic victory

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)
Show Comments

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.