Election Chaos! India, Mexico & South Africa

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India’s stock market took its worst tumble in four years after Indian Prime Minister Narendra Modi’s BJP lost its parliamentary majority in a surprise outcome.

This result means that Modi will need to rely on smaller parties to form a governing majority in the  Lok Sabha, the lower house of India’s parliament, raising uncertainty about the Indian leader’s ability to pursue his pro-business agenda.

Surprise election results in Mexico and South Africa also shook markets over the last week.  Should investors worry about the effect elections can have on markets?

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