Within hours, the world will know if Hillary Clinton will become the first female president of the United States or if Donald Trump will be moving from his Trump Tower penthouse to the White House.
Credit Suisse's public policy team is calling for a Clinton victory, a slight edge to the Republicans for the Senate and the House to remain firmly under Republican control.
Nevertheless, the team of analysts are preparing investors for a wide variety of scenarios, since the outcome of the election is far from guaranteed.
What You Need To Know
Here is a summary of the analysts' conclusions:
- A Democratic sweep would prove to be a "mildly negative to mildly positive" event for U.S. equities (+/- 4 percent).
- A Clinton win and a split Republican Congress will be a "neutral to moderately positive" event (0 to +7 percent).
- A Trump victory would result in a downward move of 5 to 10 percent.
- Regardless of who wins, if stocks rally post-election, the median S&P 500 next 12 months P/E ratio will be capped at 2016's peak of 18.6x.
- If stocks fall post-election, the analysts expect the S&P 500 to fall to a multiple of 16.6x, but a deeper move could drop to a 15.5x multiple.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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