After nine straight days of market losses stocks surged on Monday following news that the FBI had concluded its probe into the new emails in question. The futures market blasted off Sunday night and going into Monday's close the markets never looked back. All the major indices added more than 2%, along with a 2% rally in oil. So, as of now the markets have factored in a likely win for Hilary. Although the election is not until Tuesday evening, what sectors, or stocks should you be most concerned about going into the election?
First, if you want to assume a Trump win then you likely would want to hedge, or completely exit any Mexican stocks or ETF's. Volatility in the Mexican ETF (NYSE: EWW) are just off all time highs, hinting that a Trump win could be quite a problem for the Mexican economy. After all, the man wants to build a wall at Mexico's expense and it doesn't sound like it will be a cheap wall.
Next is the financial sector. First of all the financial stocks (NYSE: XLF) have been gaining strength already due to the likelihood the the Fed will raise rates after the elections. Another bullish reason for the banks would be a Hilary win. She has a long history of being lenient with the banks, and the sector feels that she is the best for their business overall.
Lastly, a Hilary win could be quite bearish for biotech stocks. The Clinton's have long had issues with drug prices and the general operations of biotech companies. The (NYSE: IBB) is off over 13 from its highs at the thought of Hilary Clinton coming after the biotech sector.
So what do the analysts think about the markets just after the elections? There are 3 different outcomes possible and here is what analysts seem to be agreeing on:
1) Slight market rally if Clinton wins and a Republican house.
2) Slight sell off with Clinton win and Democrat house.
3) Substantial selloff with Trump win and Republican controlled house and senate.