Point is: Markets believe this election will have huge ramifications for the global economy. It's not just about us; it's about the world.
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And notice the other difference: Markets normally rise on news that a Republican will win. But it didn't for Trump. He's the exception.
Over the past few decades, markets haven't moved much on election news. But Trump is the exception. This time is different.pic.twitter.com/B62nq15JD5
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</end tweetstorm> I'm not sure if tweetstorming an academic paper works, but I gave it a go. The paper is here:https://www.brookings.edu/research/what-do-financial-markets-think-of-the-2016-election/ …
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Markets hate uncertainty. When uncertainty is removed and volatility decreases,
$SPX rises. Trump is uncertainty incarnate -
Less demand for downside protection from Trump presidency = rising
$SPX. Doesn't mean Hillary is def thought better for corps -
If the currency/stock whipsaws following Brexit are indication, market moves surrounding an election cycle can be misleading
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These short-term market moves are not driven by long-term price discovery - it's dynamic hedging.
End of conversation
New conversation -
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RT http://www.breitbart.com/2016-presidential-race/2016/10/22/donald-trump-contract-american-voter-100-days-5338007/ … vs. incorrect .
@JustinWolfers single axial analysis http://www.dailymail.co.uk/news/article-3862682/Donald-Trump-elected-president-TANK-economy-15-cent.html … Your asterisks = bias#TrumpPence16Thanks. Twitter will use this to make your timeline better. UndoUndo
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if Trump got elected, his deficient understanding of basic economics would send the US into a tailspin.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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