, Columnist
Markets Aren’t Great at Handling Contested Elections
When the Florida recount consumed the U.S., traders struggled to navigate the extraordinary level of uncertainty.
“The market doesn’t like not knowing who the Leader of the Free World is going to be.”
Photographer: Joe Raedle/Hulton ArchiveThis article is for subscribers only.
It is increasingly likely that the outcome of the presidential election in November may take days, even weeks, to unravel. A recent model went so far as to predict a “Red Mirage” – the appearance of a Trump victory in the days before mail-in ballots tilted the election towards Biden.
This would be confusing and confounding in ordinary times. But such an outcome could lead to a prolonged, disruptive power struggle in this election given President Trump’s history of election fraud frauds — even when he won in 2016.