Expect Bouncy Until Election
The market recorded its first up day in a week last Wednesday and we have bounced up and down since then. It is likely that this type of back and forth, higher volatility action is what the near future will look like. As we close in on the election many questions and potential risks arise. Not surprisingly the time leading up to a presidential election tends to be bouncy and we are sure 2020 will offer its own unique flavor.
We have been researching what a contested election could look like. In 2000 the market corrected almost -10% over 3 weeks following November 3rd and the disputed Florida results, which was a sharp decline for the time. Developed International Stocks and gold held up much better, though once the matter was settled they sank back down to meet the domestic market, we were in the middle of the dot com bubble bust bear market at the time. This time around the market is likely to react even faster to any outcome. We will continue to research.