Ask an expert: Elections and the market
MSN Money's Anthony Mirhaydari discusses how Tuesday's outcome could affect investors.
In this video, MSN Money's Anthony Mirhaydari discusses how the outcome might affect issues such as the fiscal cliff, who which candidate would be better for investors, and investment strategies ahead of the election.
As President Barack Obama and Republican Mitt Romney prepare for the vote, many people believe that whoever wins could have an impact on the market and investors.
The impact, however, may be overblown, Mirhaydari says, and in the end it's all a wash.Perhaps most important at the moment is the fiscal cliff. Yet no matter which candidate wins, it's questionable how much action he will be able to take, given the gridlock in Congress.
With so much unpredictable political risk, the smart trading strategy to avoid any post-election volatility, Mirhaydari suggests, is to get neutral, perhaps by moving some money into cash or bonds until the market has digested the outcome of the election.
The discussion about the election and its effects on the current trading environment continues over at MSN Money's Facebook community.
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Historically speaking the S&P 500 has always had a positive return for the next 6 months - 1 year after an election. It will be very interesting to see if history repeats itself and the S&P 500 generates a positive return 6 months - 1 year after the next president is elected. With the upcoming fiscal cliff and the ongoing turmoil in Europe coupled with the slowdown in China, it may be quite a challenge for history to repeat itself.
ingeniousinvesting.com
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