The Wall Street financial community is generally optimistic about a rebound in stocks once the US election uncertainty is resolved.
According to analysts from Bloombergspecialists at large companies such as Morgan Stanley and JPMorgan are anticipating that The S&P 500 index could see a significant increase after the election results are known. This index has already experienced a growth of 21% during the year 2024, and is expected to continue its rise.
These specialists generally point out that stocks, especially those of small caps, could benefit in the post-election period.
The week leading up to the vote has shown weakness in the market, which has historically been a positive indicator for performance in the following month, suggesting that the recent drop could be a buy signal.
Despite the electoral tension, with Vice President Kamala Harris and former President Donald Trump competing in a very close racethe stock market has remained relatively calm.
Deutsche Bank AG spokesmen mention that, although October saw the first monthly loss since April for US stocks, the drop was less severe than the historical average before disputed elections. This year, capital inflows into stocks have been robust, indicating solid confidence in the market.
Morgan Stanley’s Mike Wilson views this election as a “clearing event” that could trigger significant stock buying towards the end of the year, with the S&P 500 potentially reaching 6,100 points, up 5.5% from its recent close.
JPMorgan expects market volatility to decrease and confidence to increase once the winner is announced, which could lead to a reorientation of investments toward a more stable market with resilient corporate profits.
And what will happen to bitcoin?
Although these analysts do not refer to the price of bitcoin, it is interesting that there are others who reach similar conclusions for the digital currency.
CriptoNoticias has reported, for example, to specialists from the investment firm Bernstein, who believe that BTC will have high volatility in the coming hours or days. According to them, the price could fall to $50,000 if Kamala Harris wins or shoot up to $90,000 if Donald Trump wins. In any case, beyond this initial and temporary volatility, would soon recover its upward trend and would maintain it for much of 2025, perhaps reaching $200,000 per BTC.
This information portal also shared today the opinion of Iván Paz Chain, an expert in trading and financial markets. Paz Chain says:
«Without a doubt, during the elections there will be volatility in the market, whether up or down, to take out the over-leveraged. After that volatility, the price will take its natural and organic path, which will probably continue upwards.
Iván Paz Chain, CEO of Trading Different.
For him, the “halving effect” remains extremely powerful and there is a high probability that the historical pattern that causes BTC to skyrocket upwards approximately six months after each halving will be fulfilled again. Please note that the last halving, until now, was in April 2024.
For the moment, in the short term, we will have to be attentive to what happens in the next few hours or days with the results of the elections in the USA. Possibly, even if Donald Trump (the favorite candidate of bitcoiners, In general) the price of BTC would have some slight and brief fall as a result of the strategy known as “selling the news.”
