Toro
Diamond Member
As the market tanked at the beginning of Obama's Presidency, his odds of winning the 2012 election steadily ticked lower. But now that the market has surged in recent weeks, his odds to win have spiked to their highest levels since January. Currently, traders on Intrade are putting the odds at 65%. We saw a similar trend with the market and former President Bush's approval ratings towards the end of his second term. If the economy and stock market make a nice comeback over the next few years, it should be easy for Obama to win a second term. It's a pretty simple formula.
Bespoke Investment Group: Dem to Win in 2012 Spikes with Market
Why is this in the economy section? Because the odds of a President being re-elected is partially dependent upon how the economy is doing. It is easier for the President to be re-elected if the economy is doing well.
Of course, anything can happen over the next four years, and I don't put any stock in predicting the election that far in advance. However, the odds rising for re-election in the future is an indicator that the perception of the economy is improving now.