The odds are very likely that Obama will win re-election, so I think that is probably already priced in the market. If Romney wins, then the market might get an initial bump, but will probably fade. I learned from reading Ken Fisher that the markets are contrarian when it comes to presidential elections. I wrote about it on my blog: http://simple-trading-system.blogspot.com/2008/08/how-will-presidential-election-affect.html