I recently got an email from someone who said they were going to sell all of their stocks until after the election was settled. They think Clinton will win and that her "tax and spend" policies will cause interest rates to skyrocket, which will crash the stock market. They say they will then "reinvest after the election and earn some easy profits". Does this really make sense though? Let's dig a little deeper.
First, I suspect the financial markets prefer a Clinton victory at this point. It's not that Clinton will be a better president. No, that's got nothing to do with it. It's that Clinton's victory won't bring about much uncertainty. After all, with Clinton we're looking at policies that aren't drastically different from Obama's, so you get 4 more years of the status quo to some degree. Your politics might not agree with that, but the financial markets…