On the face of it, markets tumbling lower than per week earlier than the election doesn’t appear like a great factor.

The Dow has fallen over 7% prior to now 9 buying and selling days, with Nov. 3 simply across the nook (the S&P 500 has adopted go well with, dropping roughly 6%). Whereas spiking coronavirus instances and a lack of a stimulus deal are definitely driving some investor angst, does a pre-Election Day sell-off bode in poor health for Trump’s re-election?

“All else equal, a weaker inventory market might definitely assist Biden,” LPL’s Jeff Buchbinder tells Fortune. “On the margin [it’s] a little bit bit worse for President Trump primarily based on historical past.”

Although pre-election drops of this magnitude aren’t remarkable, they’re uncommon. The S&P 500 and Dow each fell over 3% on Wednesday, and in line with LPL’s Ryan Detrick, “Solely twice did the S&P 500 fall 3% or extra inside 6 buying and selling classes of the presidential election. 1932 and 2008. The incumbent social gathering misplaced each instances,” he wrote in a tweet Wednesday.

Detrick provides, “earlier than [the] 2016 [election], the Dow fell 9 days in a row and the incumbent social gathering clearly misplaced, so that point performed out poorly for the social gathering in energy,” he advised Fortune by way of electronic mail.

What maybe has stronger historic precedent is a barely longer time horizon: Buchbinder notes that in 20 out of the past 23 elections, it boded nicely for the incumbent when the S&P 500 was up three months earlier than the election, whereas shares buying and selling down tended to favor the challenger. Shares have traded roughly flat since three months in the past, however turned decrease on Wednesday: The Dow is down round 0.5% since August 3, whereas the S&P 500 is buying and selling about 0.7% decrease.

“Possibly from that perspective you may name it a blended bag” for Trump, Buchbinder says, although the now-negative three-month pattern would recommend a Biden victory.

Buchbinder factors out that “shares that are usually favored extra by Democrats than Republicans proceed to do fairly nicely on a relative foundation, doubtlessly signaling Biden.”

Certainly, according to a recent J.P. Morgan report, shares in a so-called “Biden basket” (names that may do nicely underneath his administration) are outperforming these in a “Trump basket” by round 66% since December 2019. “Not too long ago markets have been saying, ‘Biden’s the favourite,’ however we’ll see the place it goes from right here,” LPL’s Buchbinder provides.  

Nonetheless, some argue that the competition between the 2 candidates is nearer than pollsters and maybe even markets had anticipated in current weeks: According to some A.I. analysis, the race is tight, and Buchbinder notes “we might get extra volatility if the polls tighten and extra folks begin to fear a couple of contested outcome—that’s one thing to look at.”

To make sure, there’s hardly something typical about this 12 months, and a few historic patterns have been damaged (as a small instance, Oct. 28 is traditionally the best day of the year for stocks—a pattern that definitely hasn’t held up in 2020).

Regardless of the current selloff, continued virus worries, and general investor angst, Buchbinder stays optimistic: “The mixture of [future] stimulus, getting the pandemic underneath management and shifting previous it, and readability on the election, we expect, can push shares larger between now and year-end and into 2021.”

Extra must-read finance coverage from Fortune:

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