Wall Street Puts Faith in U.S. Prolonging Political Gridlock
- Stock, bond markets show no fear ahead of November vote
- Complacency may give way to volatility, warns BofA’s Woo
Trump Narrows the Gap as 2016 Race Hits Homestretch
This article is for subscribers only.
The U.S. presidential election is nine weeks away, but Wall Street has already chosen a winner: itself.
Just when you’d expect volatility to be on the rise in the face of mounting political uncertainty, the sanguine state of stock, bond and currency markets in the run-up to Nov. 8 paints a very different picture. On the surface, fear is nowhere to be seen. In its place -- optimism that four more years of political gridlock will stymie efforts to loosen the fiscal purse strings, forcing central bankers to continue relying on the same easy-money policies that have driven asset values to unprecedented highs.