Going forward the market will be very volatile.You probably know about the upcoming US presidential election on 9th November.
No matter who is going to win the election, there will be 5% swing in the market.
There is little doubt because whoever wins the election, there will be the change in the trade relations of the world’s largest economy.If Clinton wins, then it could mean a more or less status quo.But if by any means her Republican counterpart Trump wins then there will be large scale changes in the trade relation of US.This could lead to a large-scale sell-off in the stock market.
The fresh developments of the Clinton’s Emails being leaked have made the situation worse.FBI will investigate the case.This has lead to decreased popularity of Clinton just ahead of an election which is dangerous for the stock market.
Trump is somehow not liked by the market.If he wins the election, then there will be large scale changes in the US economy.He will make changes in the economy which is not liked by the markets.He is a very controversial person which could be detrimental.
Although chances of Trump winning the US election was very less until recently before Clinton’s E mails were leaked.But the fresh developments will have some effect on the outcome.
Brexit was thought to be an impossibility.Now after Brexit, everything seem to be a possibility.People want changes and Trump seems to promise that.
Going forward in December there could be an interest rate hike by Fed.This has lead to a wide scale uncertainties going forward.How the market will react to an interest rate hike is not known.Will it push the economy into recession?There are a lot of questions lingering in the market going forward.Only time will be able to answer all.