9/27/2016
By Charles Payne, CEO & Principal Analyst

Much has been made about the stock market and the outcome of this presidential election. While there are distinct policy differences that should result in economic backdrops that would impact the stock market differently, there are also unknowns that are impossible to predict. 

Firstly, it goes without saying the pro-business policies of Donald Trump should result in better top-and bottom-line growth, ultimately to propel stocks higher.  The wildcard is a trade war or vendettas for companies that move operations outside the United States. 

Meanwhile, Wall Street and Big Business are putting their money behind Hillary Clinton.  No executive from the top 100 companies in America has made financial donations to the Trump effort.  With profits near all-time highs, they probably care more about global trade than lower U.S. taxes.

There are some recent signals from the stock market that one could conclude point to a Trump win in November.  A sell-off in solar stocks has become an avalanche as Donald Trump has caught up to his rival.

Then there’s the Mexican Peso, which is at its lowest level ever versus the U.S. dollar.  Like solar, this isn’t a recent development, it has become much more pronounced as Trump’s numbers have soared.   The big conundrum is that it doesn’t make a trade war easier, and Mexico is looking great as a vacation destination. 

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Charles Payne
Wall Street Strategies

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