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Presidential Debate Scares the Stock Market
A lead article in Reuters says that global stocks fall before U.S. presidential debate. Why is it that the presidential debate scares the stock market?
Stock prices around the world declined on Monday ahead of the first U.S. presidential debate between Hillary Clinton and Donald Trump, while oil prices rose in advance of an informal OPEC meeting in Algeria on hopes for an output cut.
Half of America’s likely voters will rely on the presidential debates to help them make their choice between the two major U.S. party nominees in the Nov. 8 election, according to a Reuters/Ipsos poll released on Monday.
“The polls have both candidates neck-to-neck. The debates might increase the lead of one over the other and that’s what the market is fearful of,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
Is the market just afraid of the uncertainty or is it afraid of one of the potential outcomes of the election? Last month we gave some thought to either a Clinton or a Trump presidency and the stock market.
If Hillary Clinton Wins
What a Clinton presidency would mean for stocks depends on whether or not democrats regain control of the senate or even the House of Representatives. We looked at what Kiplinger suggested for stocks picks if Hillary Clinton wins.
Although we have an idea about what Clinton would want the odds are that the Republicans will retain control of the House of Representatives even if they lose the senate. Thus there will need to be deal making for the government work function. That having been said here are the Kiplinger picks.