Stocks slammed post-election - CBS News (MoneyWatch) The U.S. and international stocks markets are giving up roughly twice the gains they clocked in on Election Day. Is it due to President Barack Obama's victory as the media headlines claim? Or are investors reacting to developments overseas? European Central Bank President Mario Draghi warned that Germany, the continent's largest economy, is no longer insulated from the eurozone troubles; stock futures tumbled after that comment. I looked at how the U.S. stock market has performed on Election Day and the day after for some clues. Since 1984, the U.S. stock market has averaged a 0.49 percent gain on Election Day and a 0.42 percent gain the day after, using the Wilshire 5000, the broadest measure of U.S. stocks. The biggest day-after gain of 3.80 percent came in 2008 when Obama won his first term and, so far, the largest loss of 1.86 percent came in 2000, when George W. Bush won his first term. Excluding today, stocks rose 1.58 percent after a Democratic win and declined 0.60 percent after a Republican win. What this tells us is very important -- past performance is not indicative of the future. I think Nate Silver would approve of me noting there is no statistical evidence whatsoever to have predicted an up market today. And the fact that stocks have historically performed better under Democrats than Republicans is a lousy reason to increase one's allocation to stocks. Hopefully, our politicians can work together to solve the fiscal cliff. There are two things I never predict, however -- the stock market and politics.