Tags: Trump Administration | mark grant | brexit | american style | election

Strategist Mark Grant: Election May Bring 'Brexit, American Style'

Image: Strategist Mark Grant: Election May Bring 'Brexit, American Style'

(Getty/Leon Neal)

Tuesday, 08 Nov 2016 02:57 PM

 

Market strategist Mark Grant seems to be channeling baseball great Yogi Berra’s sage advice: It ain’t over ‘til it’s over.

The Hilltop Holdings' chief fixed income strategist advises that a savvy investor shouldn’t be swayed by reports you might hear before all votes are officially counted.

"I think there's a decent possibility we may get a big surprise later this evening," he told CNBC. “I think we may find a Brexit America style, which will be impactful on the markets,” he predicted.

"I think that very few Americans are voting for anyone," Grant said. "I think most Americans are voting against someone," he said.

If Trump manages to win the White House, buying in equity markets would be a smart move, Grant said. Trump's proposed corporate tax cut, which would reduce the rate to 15 percent, "would just be a tremendous boom for corporate earnings in the United States," he told CNBC.

And amid the expected plunge markets will take if Trump wins, "I would use any drop to buy in the equity markets," Grant said.

Wharton School of Business Professor of Finance Jeremy Siegel is warning to be prepared for a stock dip should Trump win.

"I definitely think there would be a short-run selloff, pretty severe, if Trump were elected," Siegel told Bloomberg TV. "That would really go against market expectations. We know uncertainty is not welcomed by the risk markets. If Trump were to be elected I would expect a big downward spike on the risk markets, on the equity markets, but I think that's an opportunity."

Siegel wants investors to remember that neither candidate is a Marxist socialist, that both believe in free markets. There will likely be a dramatic move in the short-run but the professor believes that "we aren't moving in a severe direction" for long.

"First of all, there's a question that if Trump is elected, does he have Congress behind him? I would say no," Siegel responded. "He cannot unilaterally, now he does have some power: executive orders on trade, but not unilaterally dismantle NAFTA or many of these trade agreements."

In order to do these things, Trump would have to go to Congress, which Siegel says would be "very skeptical" even with a victory and a Republican house and Senate. Siegel also expects the dollar to decline on a Trump win due to the "nervousness" abroad. 

(Newsmax wire services contributed to this report).

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Market strategist Mark Grant seems to be channeling baseball great Yogi Berra’s sage advice: It ain’t over ‘til it’s over.
mark grant, brexit, american style, election
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2016-57-08
Tuesday, 08 Nov 2016 02:57 PM
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