A strategy report for investors by JP Morgan suggests that regardless of which candidate wins the presidential election on Tuesday, markets will likely rally in the short term.
“Historically equity markets have rallied following a close election, regardless of the winner (incumbent or challenger), likely benefitting from the reduced uncertainty,” the report reads. It predicted Romney would likely receive a slightly bigger bump the next day than Obama due to his popularity with investors.
Tom Block, an independent consultant on the report and former head of government relations for JP Morgan Chase, told TPM that he expects to see a lot of money earmarked for potentially affected industries like energy (oil/coal for Romney, wind/solar for Obama) and health care come off the sidelines enter the market once there’s more clarity.
“They’ve just been reluctant to commit until they see the outcome,” he said.
