September 30, 2020 at 12:42PM
A Major Money Manager Doesn’t See a Contested Election Ruining the Markets
According to WealthWise Financial CEO Loreen Gilbert, a highly contested and controversial election is unlikely. Even then, the S&P 500 would be able to gauge the winner as the election comes to an end. There would be sufficient data for investors to weigh in to predict the election as time passes accurately. The S&P 500 declined by 6.85% since the September 2 peak, stagnating throughout the past three weeks. But since March 23, the S&P 500 index has climbed by 49% from 2,237 to 3,335 points. Speaking on CNBC’s Trading Nation, Loreen said, “we are in a bull market run,” predicting a strong end to 2020.
The Expectations of a Stimulus Package by the Year’s End are Increasing
Washington has been in a stimulus stalemate for months, as both Democrats and Republicans struggle to agree on a figure. On September 28, House Democrats introduced a revised stimulus bill that includes direct stimulus checks to individuals. A major catalyst behind the S&P 500 index’s recovery from March to August has been the stimulus. While the stimulus approval timeline remains uncertain, strategists believe it is risky to be on the sidelines. The stimulus proposal could get approved at any moment in the near future, which could revive the market sentiment.
Debates Historically Had Minimal Impat on the S&P 500
Historically, presidential debates had minimal effect on the S&P 500 and stocks, in general. A deep dive into past stock market cycles show market movements in the range of 0.3% to 2%. Based on the data, market strategists do not anticipate the S&P 500 to see heightened volatility over the next several weeks. Given that the stock market has seen intense movements since July, the probability of a gradual uptrend remains high.
3 Reasons These Train Wreck Debates Won’t Derail An S&P 500 Rally, CCN, Sep 30
From: The FxPro News Team https://fxpro.news/daily-forex-outlook/3-reasons-these-train-wreck-debates-wont-derail-an-sp-500-rally-20200930/
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