Reliable Presidential Election Model Picks 2016 Winner

Is the next election over before it begins? Since 1980, Moody’s has a nearly 90 percent success rate in forecasting each state. Now, its 2016 presidential pick is in.

The Moody’s Analytics presidential election model has accurately predicted every presidential election since 1980. And it indicates a Democrat will win in 2016.

Moody’s newly released analysis for the next election, titled “A Nail-Biter in 2016,” predicts that the Democratic nominee for president will win with exactly 270 votes from the U.S. Electoral College — the minimum amount required to win.

Meanwhile, the Republican nominee is forecast to earn 268 votes.

Moody’s model does not predict which candidate will win, only which political party.

CNN Money notes that Moody’s has a great track record when it comes to such forecasts:

The model correctly predicted every state in the 2012 election and has a nearly 90% success rate in forecasting each state accurately since 1980.

The main underpinning of Moody’s model is not politics but the economy, however, with three economic variables being keys to the election outcome.

The first variable is the growth in real personal income per household in the two years leading up to the election, Moody’s report explains:

This variable captures the strength of the job market in each state, including job growth, hours worked, wage growth, and the quality of the jobs being created. It also captures how well households are doing on some of their investments, as it includes dividends, interest income and rents.

This variable currently favors the incumbent party, the Democrats, because all of these factors have been on the rise with the exception of wage growth, which is predicted to increase in the coming months.

The second economic variable influencing voting decisions is home values in the two years leading up to the election. Moody’s states that this is because homeowners base their thinking about future price growth on recent price gains.

Again, this favors the incumbent party because home values have been on the rise since the housing bubble burst.

The final economic variable is the percentage change in gas prices in the two years leading up to the election, the Moody’s report states:

Gas prices are a very visible price that matters significantly to the finances and perceptions of many households. Consumer confidence is closely tied to movements in gas prices, as rising prices quickly undermine confidence and falling prices lift spirits.

Because gas prices have fallen by nearly $1 over the past year and Saudi Arabia and Iran are expected to increase production, this variable also favors the incumbent party.

Which party do you think will win the White House in 2016? Share your thoughts below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

Read Next: Trump Worth $10 Billion Less Than If He’d Simply Invested in Index Funds

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,550 more deals!