Ask an expert: Elections and the market

MSN Money's Anthony Mirhaydari discusses how Tuesday's outcome could affect investors.

By MSN Money Partner Nov 5, 2012 10:31AM
With only one day till the presidential election, many investors are wondering how the results might affect the market.

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.

Comstock Images Getty ImagesThe 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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2Comments
Nov 5, 2012 4:13PM
avatar
Hey Anthony,
What's this, "The discussion about the election and its effects on the current trading environment CONTINUES OVER AT MSN's FACEBOOK COMMUNITY?"  What about the people who are not on Facebook?  When did MSN get in bed with Facebook?  What's really going on here?  This is a bunch of BS and unfair to non-Facebook users.  Anthony, I've never been a big fan of your column anyway; your insights, comments and market "predictions" vacillate like the wind, changing radically from day to day; it's impossible to interpret what your position on any subject really is!  But, this little trick clinches it for me, you can take your column and stick it, "where the Sun doesn't shine!"
Don Moore
Nov 5, 2012 3:48PM
avatar

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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