nov

Right now, logic suggests that markets hate uncertainty and that an election process should translate into volatility and spectacular declines. However, history and the dynamics of economic policy in the United States show the opposite: while the market awaits the outcome of the elections, an invisible safety net prevents a collapse.
​1. The "Calmness" of Public Spending and Liquidity
​In the run-up to a general election, the outgoing administration does everything it can to avoid a recession or a stock market crash that would negatively affect voters' perception. Fiscal policy tends to remain expansionary, and direct and indirect stimuli flow to sustain consumption and market confidence.