Wall Street investors have to prepare for both possible outcomes as the nation awaits for the winner of Tuesday’s presidential election between Donald Trump and Hillary Clinton. While Clinton offers market stability, a Trump victory would potentially rock investors in the short term.
“If Trump wins, I think you can see a very volatile market, and the reason for that is investors like consistency and they don’t like the change that Donald Trump would represent,” Fox Business Network host Trish Regan told TheWrap.
Regan said Wall Street doesn’t like that Trump can appear to be a loose cannon at times, so a GOP victory on Election Day could result in a substantial reaction from investors.
“If he says, ‘Look I am going to make it so that Ford can never send a job overseas,’ then will that have an impact on Ford stock price? Potentially, until the market learns what really the end game is,” Regan said “Is this just rhetoric or is there some actual truth to what he’s saying and the policies he’s able to get through?”
Regan compared uncertainty to the situation surrounding Brexit when the United Kingdom’s market had a tough time following the surprising decision to leave the European Union.
“Without a doubt there will be volatility and the markets are preparing for that,” Regan said. “However, the UK recovered. I would say the same will happen with our markets. They’ll be shocked, but they’ll adjust.”
“The Intelligence Report” host said Trump is not a traditional conservative when it comes to financial issues.
“What he’s talking about in the way of restricting free trade and the downside of globalization, these are things that are somewhat foreign to tradition conservative views,” Regan said. “He’s on to something, in that our middle class has really struggled and globalization, while some have benefited, has left many, many people behind.”
She added: “Regardless of what happens, the Republican party needs to think long and hard about some of its economic policies and perhaps rethink some of these trade issues so that Americans benefit more from them.”
Regan currently hosts “The Intelligence Report” weekdays on Fox Biz. She was previously the anchor of the daily market-close program “Street Smart” on Bloomberg in addition to stints at CNBC and in the emerging debt market group at Goldman Sachs.