facebookDo you think the beginning of the new year might also bring a sharp sell-off in equity markets? - Seedly

Anonymous

18 Nov 2020

Random

Do you think the beginning of the new year might also bring a sharp sell-off in equity markets?

From currently high market levels, if the risk of a dramatic change in the assumptions surrounding tax, fiscal, and economic policies were priced into the market in the form of potentially lower future asset prices, then there is a chance that such re-pricing could occur in a sharp and algorithmically driven, sudden way.
https://www.trussvilletribune.com/2020/11/16/fi...

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The US markets has been pricing in/leaning towards a gridlock between a democrat president and a republican senate, which will (among other things) make joe biden's push for higher corporate taxes difficult. So this gridlock scenario has been largely favourable for the US equity markets.
However, coming january, in the surprising event that the democrats win both seats during the runoff elections in Georgia, that will be against what the street has been pricing in and might be a catalyst for a selloff for US equities.

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Jiayee

18 Nov 2020

Salaryman at some company

I hope so too!...

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