A delayed or disputed result will trigger uncertainty and the inevitable downturn in stocks. The likelihood of either or both scenarios is increasing – and not because it’s expected to be “too close to call”.
In fact, as of this writing, Joe Biden is taking a large lead in the polls. Rather, the concern among political analysts is that Donald Trump has made an issue out of mail-in ballots. Joe Biden for his part, has openly discussed a scenario in which President Trump would dispute the results. This politicization bodes poorly for a smooth result in November.
Add in potential meddling by China, Russia and Iran and you have the makings of a long election night – and perhaps days of election uncertainty.
Our recommendation for mid-term traders – move to a sizable cash position ahead of election night.