Stock Market Acts as if Clinton Will Be President
Last month, Barron’s weighed in with a cover story stating that “investors need to put their emotions and partisanship aside and acknowledge what the polls are telling us: The next president probably will be Hillary Rodham Clinton.”
Of course, a narrowing in the polls in recent weeks may have led some to question the boldness of our “It’s Starting to Look Like Hillary’s World” cover.
But apparently, both Clinton and Donald Trump, her Republican rival, decided last night that they didn’t want to make a liar out of Barron’s.
“For the financial markets, which hate uncertainty and are increasingly concerned by Trump’s strident and personal attacks on [Fed Chair] Janet Yellen, the so-so Trump performance last night probably reinforces Wall Street’s view that Clinton will win,” wrote Greg Valliere, the chief global strategist with Horizon Investments, in his Tuesday-morning memo to his institutional-investor clients. “There’s no great love for Clinton in the markets — which want to see pro-growth policies — but this race is a classic case of the devil you know versus the devil you don’t know.”
He added, “The markets can grudgingly live with her, since she would be checkmated by a conservative House.”