A recent election result could fuel a stock-market rally, but a strategist warns of a potential wild card. Tom Essaye, founder of Sevens Report Research, suggests that two possible outcomes from the U.S. presidential election would likely benefit stocks. However, if the Republican party sweeps the election, it may lead to increased volatility in 2025 as deficits and debt become a major concern.
Essaye notes that a Republican sweep would be the most positive outcome for stocks into year-end. Nevertheless, this scenario comes with a caveat: a potential increase in volatility in 2025 due to growing concerns over national debt. This highlights the importance of monitoring key economic indicators, such as the 10-year Treasury yield, in predicting market trends.
Source: https://www.marketwatch.com/story/this-election-result-could-pour-fuel-on-stock-market-rally-but-watch-out-for-this-wild-card-2db31bf0