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How will the presidential election impact the markets?

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  • Description

    Personal finance expert Vera Gibbons sounds off

  • Duration 2:46
  • Date

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-- trouble on Wall Street the Dow Jones Industrial Average tanked dropping more than 200 points yesterday -- the sharpest drop since June so what lies ahead.

With less than two weeks in the presidential race how -- the election results impact the markets.

You're not a break down the various scenarios is personal finance expert Vera Gibbons thank you pinpoint when I had -- -- -- -- scenarios is let's say President Obama wins reelection and com.

Where some remains divided what -- a status quo that means that Romney's business friendly policies are off the table so the market could take a quick dip in response to that.

Sort of as a show it does appointments he attention -- then shipped to the fiscal cliff the dreaded fiscal cliff.

When the divided congress and when expect a quick deal on that front.

To be more of the same gridlock going on the market more the same up and down more of the same roller coaster ride until we get answers to the questions as they pertain to tax reform.

Entitlement spending of some of the other big issues that are continuing to plague the market and with gridlock those questions might appear even -- -- thought yeah.

Scenario let's say Mitt Romney wins and let's say the GOP wins control of congress I said this to be a sweep right -- the market I think -- take off for a couple of reasons businesses would be happy of course because they like.

Romney's plan to cut taxes to slash regulation -- that be a positive.

And single party control I think makes it -- like to give me give me get a deal.

-- as far as taxes and spending actually gone public until pretty quickly the one wrinkle in the one had -- in this area is fed chief Ben Bernanke.

Bonnie has said publicly that he wouldn't reappoint him.

When his term is up in 2014.

So that -- you think about checking the markets have become very used to his style very as the liquidity that he brings.

And I think concern about tighter monetary policy with adversely affect the markets -- doesn't like his.

His plans to stimulate the economy -- -- inflationary hitting right effective so.

He wants it.

Out after his term expires -- not 2014 -- let's say Romney wins.

But the congress remains divided by so -- get delayed to get us off the fiscal -- hot cliff house Republicans I think would wait until.

Romney's in that in the White House because that would give them.

The most leverage.

And then with a democratic controlled senate had.

You've got some issues as it -- about two because -- Romney would be forced to actually come up with -- more moderate their proposals that cut spending cut taxes so.

Probably more moderate that he would actually like.

So that's something to think about as well he would like to see things go to telling the other direction but.

Compromises something that -- Wall Street actually needs we haven't seen -- the parties have been so radically divided I think compromise might actually be good for the markets to some degree could palace hiring and some of the forecast from the market watchers are expecting double digit gains of -- -- 1224 months I think a lot of have to do with.

Coming to a middle ground something that's been missing for way too long all right a lot -- remains to be yes all right very Gibbons thank you so much as always thanks --

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