Talk Money: August 9
Can the US stock market predict the result of the presidential election?
There is a theory on Wall Street that says it can.
If the Standard and Poor's 500 stock index makes gains in the three months before Election Day then the President, or the candidate from the same party as the President, is likely to win. But if stocks go down, the candidate from the other party is favoured to win.
The theory is based on elections going back to 1928. In all but three of those elections, the theory proved correct.