[vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][image_with_animation image_url=”1307″ alignment=”center” animation=”None”][/vc_column][/vc_row][vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]It should be no secret that the US is in the midst of one of the most contentious and bitter election cycles in recent memory. One especially interesting part of the elections is the disunity within political parties.
Most pundits foresaw the battle that would commence among Republicans if Trump was elected, but very few foresaw the rift that is taking place in the Democratic party. Both parties nominations have faced protests, unruly members, and significant numbers swearing they will not vote for the party frontrunner.
Interestingly enough, the stock market is at an especially precarious spot as well. The S&P 500 broke records last month and has continued to hit new highs since the breakout.
This has been done in spite of weak economic data and multiple gloomy downgrades.
Many experts believe the markets are sitting on the top of a cliff, waiting for the event that will push most indices off the edge. It is quite possible that the event everyone has been waiting for will be the upcoming election.
Historically the first term of the presidency tends to match up with incredibly low returns on the markets. The second year does better, but not by much.
This is rumored to be due to presidents making the hard decisions that may have temporary negative impacts on the economy in the first two years so they can focus on economic prosperity before reelection.
This could be the build up of an economic storm, however, as everything lines up against the markets by the end of 2016.
A new president who will likely have to make some hard decisions as America enters unseen levels of debt. A market that is already somewhat overpriced and hitting new highs, and a world economy that has been in turmoil for a large part of this decade.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text][the_ad_group id=”39″][/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]It is important to note how the markets will react shortly after the election as well.
Hillary Clinton, the Democratic nominee, will likely result better markets in the short run. This is because she is an establishment candidate and it is pretty easy to know how her presidency will go.
Investors hate surprises and the unknown, and Hillary Clinton will not bring surprises.
A Trump victory on the other hand, will likely result in the markets tumbling. As with Clinton this will not have to due with policies yet, simply the mindset of investors that are fearful of the unknown.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text][the_ad_group id=”39″][/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]
It is the opinion of Beginning Stock Trader that 2017 will not be a good year for the markets. There is too much unknown and most stocks are already overpriced.
The election will instigate the end of the bull market no matter which candidate wins.
We recommend keeping a large portion of your portfolio in cash after the election until a general direction and trend is established. If a negative event, such as Brexit, does occur, short the markets hard for a few days, then pull out and wait for another clear indicator.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][image_with_animation alignment=”” animation=”None”][/vc_column][/vc_row]
