Wall Street focuses on stimulus as US election goes down to the wire

Whoever eventually wins the US election, stock markets will likely do well thanks to Fed QE enabling fiscal stimulus, but polarization itself is a threat.

With postal votes still being counted and legal challenges prepared, financial markets will remain unsettled until a result finally emerges from the US election.

So, ignore short-term market volatility. Remember, instead, that quick takes are often wrong.

The initial stock market reaction to Donald Trump’s victory in 2016 was for S&P futures to be 5% limit down even before the market opened the next day, and then a swift cash market sell-off.

The rebound followed within days and lasted for much of the next three years.

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