Results of the 2016 presidential election may have impact on markets, but it isn’t wise to trade on predicted outcomes, says investment expert Liz Ann Sonders, Thursday.
Investments based on single moments in time can prove to be difficult as there may be other factors involved such as market status, jobless claims report, etc.
“Our general message is don’t try to game this from a short-term perspective in your portfolio. We think that will end up a losing strategy,” Sonders told CNBC’s “Squawk on the Street.”
Political uncertainty could be a reason for depressed investor sentiment in the markets, Sonders stated that it has a broader impact on corporate America, especially capital spending.
“Now the test will be, following the election, when we at least have that uncertainty behind us, whether you see a lift in that part of the business,” she said. “I think that’s key for growth looking into 2017.”
Sonders calculated that a Hillary Clinton win would be the most market-friendly election result.