Market Volatility Updates

Listen to the timely podcast with Professor Jeremy Siegel, WisdomTree’s Senior Investment Strategy Advisor and Professor of Finance at The Wharton School of the University of Pennsylvania, who shares his perspective on the market on a weekly basis. 

Advisors can now join our thought leaders as they discuss current markets and actionable investment solutions. This small-setting format allows for advisors to ask questions and enter into a dialogue, leveraging our thought leadership to navigate the market uncertainty. The schedule is updated weekly.

Outcome 1: Joe Biden wins, and the Democrats sweep the House and Senate

Outcome 2: Joe Biden wins, the Democrats retain the House, but GOP retains the Senate

Outcome 3: Donald Trump wins, the GOP retains the Senate, and the Democrats retain the House

Outcome 4: Donald Trump wins, and the GOP sweeps the House and the Senate

Outcome 1: Joe Biden wins, and the Democrats sweep the House and the Senate

Potential Bearish Market Reaction & Investment Ideas: : We would anticipate more deficit spending, and, if the administration increases regulations and corporate taxes, we think infrastructure and defensive sectors could perform well. We believe higher minimum wages could benefit consumer companies and would expect more predictable trade negotiations, especially with China. We would expect short-term interest rates would stay low and for Treasuries and the U.S. dollar to face headwinds after an initial flight to safety.

Potential Bullish Market Reaction & Investment Ideas: : We could see equity markets continuing to treat all positive political developments with risk-on enthusiasm and believe the cyclicals and value stocks that were most affected by the shutdown could begin to close the gap with their growth counterparts. We would expect global growth and trade to recover as relations improve. And we could see higher Treasury yields and tightening credit spreads, although we expect the path of the U.S. dollar would be mixed.

Outcome 2: Joe Biden wins, the Democrats retain the House, but the GOP retains the Senate

Potential Market Reaction & Investment Ideas: : From a tax perspective, this would be a positive scenario for equity markets, with technology leading at the expense of more cyclical sectors like small cap value. We would expect Fed policy to remain on autopilot, for short-term rates to remain anchored, and for intermediate- to longer-dated yields to depend on the execution of the policy framework.

Outcome 3: Donald Trump wins, the GOP retains the Senate, and the Democrats retain the House

Potential Market Reaction & Investment Ideas: : We would expect the economic reopening to support a cyclical reversion where small-caps benefit from pent-up demand and with cyclicals generally outperforming defensive sectors due to strong global growth. We would expect Fed policy to remain on autopilot, for short-term rates to remain anchored, and for intermediate- to longer-dated yields to depend on the execution of the policy framework.

Outcome 4: Donald Trump wins, and the GOP sweeps the House and the Senate

Potential Market Reaction & Investment Ideas: : We would expect the economic reopening to support a cyclical reversion where small-caps benefit from pent-up demand and with cyclicals generally outperforming defensive sectors due to strong global growth. We would expect Financials and Energy to perform well, for China hawks to pressure emerging markets relative to the U.S., and for the Fed outlook to be revisited. We could also see credit outperforming on a relative basis, the yield curve steepening as inflation expectations rise, and that the future of the dollar would depend on a number of things.