Super Tuesday is Often a Bottom in the Stock Market

Super Tuesday could lead investors to panic about who the presidential nominee will be, according to NBC News.

The day, when about a dozen states will hold presidential primaries, brings out the true herd mentality of the investor base.

Stock performances tend to drop and then rebound, but only if there's a clear front-runner — not necessarily a winner. Investors opt to sit on the sidelines instead of buying, and they look to uncertainty and party bickering as a danger point for stocks.

In 1996, the S&P 500 dropped 2.9 percent the week before Super Tuesday. Stocks jumped 2.3 percent the next week after Bob Dole swept the contests. In 2012, the index dropped 2 percent before Super Tuesday, but markets rose 4 percent the week after Mitt Romney won.

This year, Republicans aren’t close to securing a nominee, but Clinton may be able to secure the Democratic nomination if she performs strongly on Super Tuesday. 
 

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