Why elections don't impact markets

Besides the difficulty in predicting election results, there are four other reasons

What do you think will happen in the elections? This is a question that comes up in every investor meeting these days. I usually start by explaining that elections have no lasting impact on markets: One need only look at the charts that show the Sensex half a year before and after the results day for the last six elections. The markets did not change direction in any. In two, of which more famously in 2004, there was volatility on results day, but soon enough prior trends resumed. In fact, despite investor apprehensions of significant volatility around election results, four