Once the American People finally realized that “The Donald” was going down for the third time—flailing like a drowning man—the U.S. Stock Market has surged. The Dow Jones Industrial Average has been trading up by more than 250 points, and the S & P 500 and NASDAQ have also started the day with considerable upward momentum. Europe has picked-up the American euphoria, and Asia-Pacific had already closed nicely on the upside.
This morning’s surge has been attributed to the fact that the FBI, late on Sunday afternoon, completely cleared Secretary Hillary R. Clinton on the prior Email scandal, which had been re-opened just 10 days ago. Besides removing considerable uncertainty from the financial markets, the potential impact of a Trump Presidency—with the implied Trade Protectionism and Isolationist assertions—had become a drag on the Global Economy.
Uncertainty distracts the marketplace with a huge question mark, which it generally has trouble digesting. Markets can adjust to bad news, which they have certainly faced many times in recent years; but, it just cannot handle uncertainly. Fact-based professionals can respond to facts, theories and even guesstimates; but, to paraphrase FDR, they do fear the unknown…Uncertainty!
Early indications in the political landscape have also pointed to some states that generally vote Republican—“Red States”—as going “Blue”, for the Democrats! The underlying question still remains: to what impact might a Clinton Landslide carry-over to “down-ballot” voting, for Senators, Congressman, Governors, etc.
Recently, some generally moderate Republican Senators have suggested that they would not confirm any Supreme Court Justices nominated by a President Hillary Clinton, for her entire term. Would that carry-over to political appointments, such as Cabinet Officers, the same way? Such obstructionist vows might further sway overall voting toward the Democrats.
A withdrawal of America, from its traditional leadership role on the World Stage, certainly should not be taken lightly! A strong U. S. presence in such area as: Global Trade; National Security; the Environment; fighting potential pandemics; advances in pure scientific research and their technological applications; would be lost. None of this could effectively be accomplished if there were a big hole in the Middle!