Equity Prices Falter in Advance of the Elections | Bob Doll

From Bob Doll at Nuveen:

….we think it is more likely than not that Hillary Clinton will be elected president. Regardless of voters’ opinions, Clinton’s policies would be more predictable than those of Donald Trump, and if there is one thing that financial markets like, it is predictability. If we are wrong in our forecast, and Donald Trump does win the election, we expect additional volatility and a likely sell-off in risk assets. In this case, we would maintain positions in equities and other risk assets until there is greater clarity about Trump’s policies.

Secondly, and more importantly, we expect markets will again focus on fundamentals after the election. And fundamentals point to an environment that should be conducive to better performance for risk assets….

The market seems to be betting on a Clinton win, judging from today’s rally, but this is still a close race.

Source: Weekly Investment Commentary from Bob Doll | Nuveen