US stocks will see a "decompression" rebound after the election
Analysts at Barclays said the market could experience a modest rebound after the US election, with bond yields and stock prices moving higher.
Barclays analysts led by Ajay Rajadhyaksha said they believe the November 5 vote is likely to achieve a "smooth transfer of power" as they believe concerns about political turmoil appear to be "exaggerated."
"Our view is that the knee-jerk reaction of the market should be a modest relief rebound in most outcomes after the November 5 election as a smooth transfer of power is just around the corner," Barclays analysts said.
Analysts said they believe that US institutions are strong enough to ensure a peaceful transition. They believe the macro impact of any protests that may be launched by Trump or Harris supporters should be "minimal."
"Of course, there may be protests from political parties that are unhappy with the results. But even if these protests are disturbing, we think the macro impact should be minimal and financial markets and investors will continue to move forward," they added.
Analysts pointed out that in the past, the market has remained relatively calm in the face of uncertainty about the results of the US election.
"In December 2020, despite former President Trump's claims of massive election fraud in mail-in voting and early voting in the election, the stock market still rose that month," Barclays analysts pointed out.
They believe that the most likely scenario to cause market concern is the so-called "blue wave", that is, a Democratic sweep, as the Democratic Party may push for an increase in corporate and personal income tax rates.
"In all other outcomes, whether a Trump or Harris win, a 'red wave' or a split Congress, we expect risk assets to rebound immediately afterwards," Barclays analysts said.
"We believe financial markets will remain calm and move on, and investors should do the same," they said.$BTC $ETH $BNB #你问我答 #BinanceBlockchainWeek #比特币布林带收窄至低水平 #phantom钱包宕机 #狗狗币创数月新高
