Economists are advising you not to pull your money out of the stock market, no matter what happens on election night.
“Stick with stocks”.
That's the advice from economist and retired business professor Peter Morici. He warns you might be tempted to dump stock on news of violent protests, no stimulus deal, a pandemic, and a possibly contested election.
“The market will recover nicely once we have a vaccine. Quite simply, corporate profits are going to rebound, and at that point, the market will be undervalued. If you sell out now, you really risk missing a big jump,” Morici said.
He says it would be better if Trump was reelected, because the president won't impose new taxes. However, Morici says there will be a president in place come January, and we will see a recovery.
“Private decisions are driving what we do. And so, I think this is more a matter of really, leadership tone than it’s going to be of substance. Down the road, if we really got all these [Biden] draconian taxes, it would be bad for the market. But I don’t think we are going to get them,” Morici added.