US Election Will Mean And Stocks

Following Brexit, the US election will be the next big confidence shock to hit the global financial markets. That’s according to Bank of America economist Ethan Harris who, in a research note sent to clients at the end of last week, noted that a string of confident shocks since the financial crisis has weighed on investor sentiment causing a seemingly permanent subnormal recovery in Capex spending and the acquisition of durable goods.

Cornerstone Macro, Druckenmiller Warn This Election Year, It’s Not Just Trump Investors Should Worry About

The string of confidence shocks has, according to Harris also eroded central banks’ supply of policy ammunition, leaving them vulnerable to a recession shock. This is a clear warning to investors that...