The Federal Reserve is to poised to start cutting rates, taking one element of uncertainty out of the market. But there's one big thing that could shake up Wall Street: the 2024 election.
Innovator Capital Management head of research & investment strategy Tim Urbanowicz joins Market Domination to give insight into the markets and election.
When asked about the election adding more potential volatility, Urbanowicz warns: "There's a lot of uncertainty. And I don't think a lot of these policies necessarily will get through. I don't think you adjust your portfolio to bet on those. But we do think with those policies being introduced, it's going to kick up volatility as we head into the fall. What we have seen with the past eight election cycles is typically about 60 days out. That is when you see volatility start to spike."
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Nicholas Jacobino
We're under 70 days out now, I think, from the election. You got Harris and Walls, uh, first interview tomorrow. How's the strategies? Are you thinking about this election, the impact on on the economy and the markets, Tim?
Well, there's a lot going on and a lot has changed over the last month. What looked like a, you know, almost a sure victory for for Trump after the assassination attempt has really shifted to be a very tight race. And Josh, when we look at some of these policies that are being proposed from both sides, but you look at the Harris, uh, you know, the potential Harris administration, um, looking at the the the price caps for for price gouging, quote unquote, that's really not taking place at all with those those grocery stores, do you look at the proposed tax increases, there's a lot of uncertainty. And I don't think a lot of these policies necessarily will get through. I don't think you adjust your portfolio, uh, to bet on those. But we do think with those policies being introduced, it's going to kick up volatility as we head into the fall. What we have seen with the past eight election cycles is typically about 60 days out, that is when you see volatility start to spike. We look at these policies being proposed, even the tariffs on the Trump side, uh, we think that that's going to add uncertainty, and we would expect heading into September, October, that you are going to see volatility in the broad market kick up.
