We are just weeks always from the November presidential elections. Even though the country stands divided between the two choices, the stock market investors are huddled into one corner worried about their fate.
This could be surprising to many people but the reason the stock market investors are worried is not because of who wins the presidential election race, but because rumors suggest that the election results won’t be announced immediately.
In an already slowing US economy, investors fear that further political instability would mean further hardships for the economy and the market.
Additionally, it is also expected that, regardless of the winner of the presidential election, the transition will be rough.
Commonwealth Financial Network official, Brad McMillan, told media sources that stock market investors believe that, given the polarised nature of current US politics, the presidential election would be disputed. If protests and violence arise, the market would suffer even more than what it already has endured.
How Will The Mail-In Votes Affect The US Economy?
As informed by market analysts, several stock market investors have expressed growing fears over mail-in voting and the presidential elections going volatile.
As per experts, since there’s already a lot of suspicion surrounding mail-in voting, any party that loses might protest over the validity of the election results. On top of a pandemic, this disturbance is definitely not good news for the US economy.
The stock market investors’ fears are not unwarranted. Anxieties surrounding the issue accelerated after Trump claimed that the mail-in voting will undermine his supporters and chances of winning.
Trump further urged State authorities to not use mail-in voting. He suggested that if people were allowed to physically vote at the voting centers, the Trump administration would continue in the White House.
Stock Market Investors Worried About October To Be One Of The Worst Months For US Stocks
As expected, September has been the worst month for Wall Street stocks. Now, new fears loom large as market analysts predict October to continue September’s stock market trend.
Furthermore, the continuing non-agreement between lawmakers in Washington in the second round of a stimulus package has worsened the situation even more.
This fear has further forced brokers to urge clients to invest more money in financial bets. Interactive brokers are expecting the market to be much more volatile right before and after the presidential elections.
The risk factors described by stock market investors are many. If the 2020 election claims are disputed, and the military gets involved, further chaos will follow.
One analyst stated that there’s no predicting now. Trading during the 2020 elections could mean a monster return if the transition is smooth. However, if disturbance occurs post presidential elections, it could mean that the stock market investors will not see a penny back.