Happy Election Day 2016, many of you are probably waiting in line right now or debating on voting later today, as we already know this has been a crazy election year, but could your vote affect the market?
Side Note: If you have not read our article on the candidate’s economic policies, please take a minute and click here.
Now we already know that the market is like a bunch of “mean girls” and will react to gossip, but is there a correlation between the election and the markets? This is a tricky topic because there is no real conclusion that can be drawn. So we at Orca have taken the facts and left it up to you to draw a pattern from there.
• When the audio tape of Trump emerged, the market rallied upwards under the presumption that Clinton would win handily.
• When the FBI opened the E-mail case against Clinton last week the market trended downwards
Recently, Ethan Harris, a global analyst at Bank of American Merrill Lynch said, ““A Democratic sweep could cause investors and corporate leaders to worry about higher taxes and regulation… And “A Trump win could have an even greater impact due to uncertainty about how campaign promises translate into policies,”
Remember Brexit, the London economy took a dive so did the pound due to the uncertainty of the future. Big investors seem to feel that same way if Mr. Trump wins today, because of the political uncertainty that Trump has projected from his plans. Mrs. Clinton on the other hand announced policies that are very much in line with our current political conditions and due to this investors are more confident in the future with Clinton.
So does our vote directly affect the market? No, but does it affect the way investors see the market and our future as a nation? Yes. Be it a pattern or not the decision is yours today!
Orca is not endorsing either party or candidate, we understand how messy this election has been and wanted to break it down as easy as possible to help our readers make the decision that benefits them and our country. Happy Voting!