The upcoming November election is shaping up to be an important and entertaining event. Investors are paying close attention, concerned about the impact the new president might have on the economy. But I believe no matter who wins in November, the incoming president will have limited impact on the economy and the stock market (at least at first). As we’ve seen in the past, presidential decisions can create confidence that leads to a bull market, or they can lead to a sense of malaise and a bear market. But it takes time for sentiment to develop and… Read More
The upcoming November election is shaping up to be an important and entertaining event. Investors are paying close attention, concerned about the impact the new president might have on the economy. But I believe no matter who wins in November, the incoming president will have limited impact on the economy and the stock market (at least at first). As we’ve seen in the past, presidential decisions can create confidence that leads to a bull market, or they can lead to a sense of malaise and a bear market. But it takes time for sentiment to develop and influence the market. The market can ignore the president for a time as traders find other things to focus on, like earnings or economic growth. #-ad_banner-#Right now, the economy is just too big to turn suddenly, and industries are too highly regulated for a new president to simply step in and make sweeping changes. After the election the new president will need time to enact policies, and it will take even more time before they really kick in. Overall, we probably have a year or more after the election to evaluate whether the president… Read More