US elections and the Market

Business - Akanksha Singh - Nov 10,2016

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markets before the us elections

Elections have always proved to be a tough ball for the market’s twist and turns, 2016 let’s pay some attention.

The whole world awaits to know if United States, the global leader, would let its reign rest in the hands of Democrat Hillary Clinton (who would be the first female president, if chosen) or will it go in the hands of Republican Donald Trump. People all over the world, wait to know and understand, who America is going to choose to lead their country; will they choose a feminist president or a misogynistic one, will America “build a wall” or “break shackles”. While the future of America appears to be at crossroads, the global market holds its breath. 

Elections are the trickiest time for stock markets, because elections decide economic policies and reforms, it’s the result that decides if the taxes would shoot up, or down, or how much is the government investing/ready to invest, and in which sector; these results make and break the economy. 

While the US stock market gained speed and soared high, after FBI decided not to charge Hillary Clinton for using a private email server, during her tenure as the Secretary of State; they cleared her stating, “no new evidence were found to warrant against democratic party’s candidate, Hillary Clinton”. 

The world markets have come to a stand-still before the elections. Investors showed caution since the competition between the two democratic and republic candidates has tightened. The investors are both uncertain and aghast, over this narrow battle of who would be-would not be; the uncertainty falling heavy on stock markets. Asian market went majorly flat, as the investors reported of being unsure of the outcome and uncertain about the intentions of both these candidates. Since, the markets seem to be favoring Mrs. Clinton; Donald Trump’s win would certainly prove to be a shock for the investors and a jolt to the global market.