Politico – Wall Street braces for election chaos

Author: , Post Date: September 25, 2020

Excerpt from…

Wall Street braces for election chaos



Wall Street brace for election chaos — I write here at greater length on the question of what will happen to Wall Street if the election result is not known on Nov. 3 or anytime soon after. Or if President Trump clearly loses but cries fraud and refuses to leave.

Because Wall Street can deal with whoever wins the presidential election … What investors can’t stomach — and are increasingly nervous about — is a rapid descent into banana republic-style chaos.

“The rising uncertainty about a post-Election Day fight is already spurring increasingly aggressive bets on Wall Street for a surge in volatility in the coming weeks. … Wall Street analysts are bracing for a chaotic Election Day and a bitter battle to follow that could feature protests and even violence in the streets.

Cumberland’s David Kotok emails: “High yield spreads widening means falling stock prices means investors fleeing means Trump more shrill means more spread widening. POTUS sinks himself and investor class. Congress following POTUS’ lead. Aaarrgh!”

Read the full story at Politico: https://www.politico.com/newsletters/morning-money/2020/09/25/wall-street-braces-for-election-chaos-790628

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