How much will the stock market correct due to US elections

The US Presidential Election is on Tuesday (3 rd November) and following the previous trends of US elections, the market is most likely to correct by a factor of 7%.

Prediction:

US election 2020 : 3 rd November

NIFTY (7.23%) / SENSEX (6.14%) / NYSE(7.1%) / NASDAQ(8%) / TOPIX(9%)

Historical Data:

US election 2016 : 8 th November

NIFTY (8%) / SENSEX (7.2%) / NYSE(5%) / NASDAQ(5%) / TOPIX(15%)

US election 2012 : 6 th November

NIFTY (3%) / SENSEX (4%) / NYSE(4%) / NASDAQ(5%) / TOPIX(8.6%)

US election 2008 : 4 th November

NIFTY (6%) / SENSEX (7%) / NYSE(17%) / NASDAQ(27%) / TOPIX(10.2%)

Due to elections the stock market will be seeing a volatility of 7%, but this is just short-term volatility, so day traders and swing traders have to be careful. Long term investors should not worry about such corrections. Such corrections are a good opportunity for new people to enter the market or for existing players to buy new positions.

After the correction we can see a bullish pattern based on previous trends as Winter approaches and investors get bullish during Christmas time.