Investors needn’t worry about how economic stimulus, the coronavirus, tech valuations, or the coming presidential election will impact the stock market. History tells them what will happen in 2021. That’s the good news. The bad news? Next year will be rocky.
Things were already looking rocky this past week. The S&P 500 index fell 2.5% to 3341, while the Dow Jones Industrial Average declined 468 points, or 1.7%, to 27,666. The tech-heavy Nasdaq Composite dropped 4.1% to 10,854, extending the previous week’s losses.
They could soon get worse. No matter if Donald Trump or Joe Biden wins in November, next year will be the first year of a new presidential term. And that’s a notoriously tricky time for the stock market. Read more…..
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According to New Zealand-based prediction market PredictIt, President Trump has a 40% chance of re-election and Joe Biden stands at a 60% chance of winning. Ed Mills, Washington policy analyst for Raymond James, and Don Schneider, economist on the policy research team at Cornerstone Macro, join “Squawk Box” to discuss how the outcome of the race could impact the market and the economy.