By
Leading strategists generally agree that trying to trade around the election is a mistake.But one chief economist says there’s a notable exception if a certain result plays out.Here’s which candidate’s policies could harm the US economy, according to Tom Orlik.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
download the app
Advertisement
Election-year autumns are full of debates, including Tuesday night’s refreshingly respectful and civil vice-presidential showdown between Democrat Tim Walz and Republican JD Vance.But there isn’t usually much disagreement about how to trade heading into elections.Top market strategists and economists at the Bloomberg Volatility Forum on October 1 generally agreed on one point: Investors who don’t bet on the outcome of elections may be better off.The race between Kamala Harris and Donald Trump will be too close to call, according to the latest polls and top political pundits, so market veterans said investors shouldn’t try to predict who will win.
Advertisement
And even if a crystal ball told traders who’d win the White House, it may not make them money, as Nancy Davis, the founder and chief investment officer at Quadratic Capital, noted.”Market timing, to me, is something really, really hard to do — because even if you know the event outcome, you don’t necessarily know how liquidity is positioned or how much cash is on the sideline,” Davis said, citing the aftermath of Brexit as an example.Still, investors should be mindful that one outcome — a Trump presidency that implements some of the toughest economic sanctions he campaigned on — could cripple growth and inflation, says Tom Orlik, the chief economist at Bloomberg Economics.
Related stories
The market isn’t freaking out about the election, but protection …
See the entire article on inflation, or, read more Arizona real estate investing news. It’s your call!
