Election brews uncertainty in Market

The race to the finish has arrived and the new commander in chief of the United States of America will be sworn in soon. The country has a huge divide with many opting for Hillary Clinton and many more for Donald Trump. As it is noticed now with the lead that Trump enjoys the markets look relatively dismal. You can put this down to limited continuity of the present government and policies and the nature of business that he will bring to the table. Given the fact that he has spoken about making America great again, there is a great deal of confusion on the international belt as to how bilateral relations will continue in the four years of office, if he should win the American vote.

The markets on Tuesday went through a relatively high but come Wednesday there is bound to be a change in shift. This is something that happens across countries when elections are underway and there is a new chief at the helm. Volatility is bound to be on the rise but in time, things are bound to settle down. At the end of the day, no President would like to see the economy or the stock market tank. Whether this is the best time to make investments would not be wise to predict at the time. Nevertheless, if it is a buyer’s market, and if the stock was always a ready reckoner, it makes sense to cash in and feel the love once the mood settles down. From the point of view of people in the know, the stock markets have shown predictability, so it is not a cause for worry.

The world is watching and many of the markets are showing a topsy-turvy response to the news broadcasted on television and social media. Having said that however, there is bound to be a good chance with united control in Congress that fiscal stimulus (tax cuts) will be on the cards. With Donald Trump heading closer to achieving the leadership role of POTUS, it shows promise for the Republican Party as they hold both the house and the senate with a clear majority. Many pundits who have predicted that Trump will not tower many just see red (pun intended) in the election tally. Down the line, it is a wait and watch game as to how the markets will respond to the new President and the policies that he brings to the table.

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