Election Guide to Markets: Correlation and the Candidates

The video explores the correlation between S&P 500 stocks and political odds during the 2016 U.S. presidential election. It analyzes how different sectors and companies are affected by the polling numbers of Trump and Clinton. Financial stocks show a strong correlation with Trump, while consumer discretionary stocks align more with Clinton. The video highlights the complexity of interpreting these correlations and their implications for market trends.

What is the primary focus of the initial analysis in the video?

• The role of international trade agreements in stock market fluctuations

• The influence of technological advancements on market trends

• The correlation between stock performance and political odds

• The impact of global economic policies on the S&P 500

Which sector is mentioned as having a moderate correlation with Trump's political odds?

• Consumer Discretionary

• Financial

• Technology

• Healthcare

How are industrial companies described in terms of their correlation with political outcomes?

• They have a strong inverse correlation with Trump

• They show both positive and negative correlations, resulting in a small average correlation

• They have a strong positive correlation with Clinton

• They are unaffected by political outcomes

Which company is highlighted as having a strong correlation with Trump's political odds?

• Qualcomm

• Nordstrom

• Goodyear

• Patterson

What is a key takeaway regarding the market's reaction to Clinton's political odds?

• Financial stocks are unaffected by Clinton's political odds

• Retailers and consumer discretionary companies show strong correlations with Clinton's odds

• The market shows a strong negative reaction to Clinton's odds

• There is a clear pattern of industrial stocks benefiting from Clinton's odds