What do experts expect to happen to the Dow if Trump wins? …if Hillary wins?
As of this moment the Dow/Naz/S&P are each up 329/109/42 points on news that Hillary was cleared by the FBI. I believe the Dow took a hit of about 300 points last week due to news of the initial discovery of the emails. This is probably a good preview of Wednesday, although the assumption that Hillary will win is probably already priced in to the markets somewhat.
Yep. Expect little reaction if Hillary clearly wins and a significant drop otherwise. The markets prefer predictability above all else, and Donald does not come close. Even if some of his policies would ultimately help Wall Street, his intentions are too erratic.
The S&P in fact had the longest consecutive day-to-day slide in 36 years after the initial FBI announcement, and after yesterday’s announcement that the case against Hillary was once again closed, the Dow, S&P, and Nasdaq all surged today.
The markets want Hillary, though they’d probably be happiest with Hillary as prez and a Republican House, which they’ll probably get.
There would be a major rout if either Trump wins or somehow the Democrats gain the House, no ‘probably’ about a rout in the latter case. The market also slipped back when Clinton’s lead appeared to be getting big enough for that to be plausible. But now that appears even less likely than Trump winning.
Based on today’s rally, there could be a ‘buy the rumor sell the fact’ even if the outcome is as expected. Not all the stock market’s problems lately are from fearing a Trump win. It’s richly valued, growth remains sluggish by historical standards, profits at multi-decade highs as % of GDP, but Fed hike cycle apparently coming. So concern could just turn back to those things, or it could rally smartly through the end of the year and beyond. If you can reliably predict that you shouldn’t be wasting time posting on web boards.
If Clinton was tired of this whole “maybe I’ll be president” thing she could make a fortune shorting the market and pretending to have a heart attack. I bet it doesn’t even count as insider trading!
Professional trader here. I predict the market will fluctuate.
At this point, just a light cough should do it. Light cough = Parkinson’s, no?
Do you publish a newsletter? Perhaps one that sells for a couple hundred a week?
I see CBOE’s VIX nearly doubled last week. Did you get in on that?
I actually do think there is an inefficiently priced market right now:
I think Clinton is going to win - and Trump won’t officially concede by midnight tonight.
I’m almost always short volatility, and last week hurt. Through, I’ve been long a 30/40 VIX bull call spread for awhile as black swan protection. I expect that to expire worthless. However, if Trump wins I think we could see a 30+ VIX and the call spread would hopefully balance out the destruction in the rest of my portfolio.
An article in the Times today on this very subject predicted drops of between 5 and 12% if Trump wins, and perhaps a gain of 2% if Clinton wins. (Though I’m not sure if the increase yesterday was baked into that number.)
The Dow is up nearly 100 points now, btw.