What Does the Stock Market Think About a Trump Presidency?

28736470374_f9fbe46dfe_bWhat Does the Stock Market Think About a Trump Presidency?

Given last Friday’s revelations, I think that there is just one conclusion that one could come to. If the FBI director drops this bombshell so close to a historic election, he must see something that is so bad, evidence so condemning that he knows he can’t wait.

With this new information, he has a choice. He could let the elections play out and then face a controversy of an indictment and do right by Hillary or he could drop the bombshell this close to the election and do right by the American people. I would think that the latter decision is the toughest one. Of course, that is why most elected nominated officials never choose it.

It must be evidence that is a game changer. If it were his intent to negatively influence the election, then he would have gone after her in July. In fact, I would imagine he would face far less controversy indicting her last July.

Let’s talk job security. Think about the job security that he would have had by not saying anything. A President Clinton would have taken care of him. Further, if this evidence turns out to be nothing, I would speculate he loses his job. So, he presumably does the right thing and put everything on the line (assuming that he has the smoking gun).

Once again, this evidence must be condemning.

So, this creates the ultimate in uncertainty for the markets – the market dropped like a rock the minute that investigation was revealed.  This is a chart of the market last Friday when the news was released.

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Of course it has rebounded a little and today thus far has not shown any follow through. The polls have been tightening. The markets don’t like the thought of a Trump Presidency. Since that bombshell, the market has experienced small negative days. In fact, as of 11/4, the market has declined 9 days in a row. I am going to go  back and research to see if that is or close to a record string of negative days.  Also, depending upon who you want to believe, the polls have been tightening. What would a Trump win bring to the markets?  It is no secret that the market is scared of a Trump presidency. In the event that it happens, we might have a few tough months. However, I think that Wall Street will see the benefits of a return to capitalism. I almost feel like I have to include the definition of the word.
Capitalism 
[Noun]– An economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned wealth.
Yes, the benefits of capitalism and Wall Street could get real comfortable with a Trump presidency.
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