UBS Director of Floor Operations Art Cashin warns that a Donald Trump victory and a Republican sweep of Congress would be a slight negative for the markets.
Markets appear to be betting on a victory for Democratic hopeful and former Secretary of State Hillary Clinton. However, a number of analysts say that outcome is far from assured.
"I don't think that it's solely about Secretary [Hillary] Clinton versus Mr. Trump," Cashin told CNBC. "The theory is that if [Trump] wins then the Republicans will either retain or win further in both houses. That'll give one party a complete sweep, and that is a slight negative for the markets," Cashin said.
Although a Republican all-out win might be a negative for some markets, Cashin said segments such as pharmaceuticals and banks, which have recently experienced pressure from top Democrats like Vermont Senator Bernie Sanders and Massachusetts' Elizabeth Warren, could benefit. Being able to call on Hillary for a 'You owe me. I campaigned for you and I would like to work on these groups," he said.
Other respected economic gurus, meanwhile, aren't ready to say a Clinton victory will be a bed of roses for the markets and investors.
To be sure, respected investment icon Marc Faber said he’s “not so sure” a Hillary presidential victory would give a boost to stock markets, so he’s urging savvy investors to stock up on gold and other “hard assets” just in case the nation wakes up with a financial hangover after one of the most contentious White House races in modern history.
“The belief is obviously that a Trump victory would be negative for asset markets, for the US market, and that a Hillary victory would be positive. But I am not so sure about this belief for the simple reason that Hillary is basically a neocon and a warmonger,” Faber, editor of the Gloom, Boom Doom Report, told CNBC-TV18.
And should she win the biggest election of her life next week, Clinton could find herself in the biggest fight of her life from the get-go as president.
Republicans on Capitol Hill are readying themselves, stockpiling ammo to use against a would-be President Clinton should she defeat Donald Trump in next week's election, Politico reported.
And they plan to expend every last bit of it to get to the bottom of Clinton's email controversy.
"Even before we get to Day 1, we've got two years' worth of material already lined up," House Oversight Chairman Jason Chaffetz was quoted by The Washington Post. "She has four years of history at the State Department, and it ain't good."
(Newsmax wire services contributed to this report).
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