Unless the new President (either Obama or Romney) gets in with a majority win tomorrow in the House of Representatives and the Senate, and the party's policies going forward become clear, I think the markets:
- will remain choppy and volatile, with little follow-through on price action and volumes
- will remain uncertain until the end of the year, in particular re: the Fiscal Cliff issue and the Debt Ceiling issue (the limit is currently $16.394T)
- will remain reactive to news-related items
- and would have to rely on the Fed continuing with their easy-money (and, potentially, expanded) policy, assuming no bi-partisanship deals can be struck on major issues
This would be a bad and economically unhealthy situation over the next four years, in my humble opinion. Other world markets will, no doubt, be negatively affected by such an outcome.
