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Why a Trump Victory Could Be An Opportunity For Investors – Yahoo!

November 08
15:35 2016

Most market experts agree that a Donald Trump victory on Election Day would not be welcome. Macroeconomic Advisers recently warned that a Trump win would trigger a 7% drop in the S&P 500 (^GSPC), wiping out over $1 trillion in investor wealth.

At the heart of these calls is the argument that Trump has been pushing unfavorable economic policies and would exacerbate uncertainty in an already jittery market. This is why Citi’s Tobias Levkovich sees a Trump win leading to a 3-5% decline. Elsewhere, JPMorgan’s Mislav Matejka warns that a Trump victory-related sell-off would not be quickly followed by a rebound.

But there is a glass-half-full way of thinking about this, and it’s great for stock market investors.

“When Trump is at inauguration … and you’re scared to death … that’s probably a buying opportunity,” DoubleLine Funds’ Jeffrey Gundlach said in June.

Indeed, bold and patient investors are likely to be thrilled by the prospect of buying stocks at a huge discount.

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