Will the election be a catalyst for market volatility?

The election season continues to heat up with less than 100 days until election day. Historically, election season can play a part in how the market moves.

Wells Fargo Investment Institute global investment strategist Veronica Willis joins Wealth! to give insight into potential market volatility from the upcoming election.

"The economy is already on a trajectory and any particular election outcome is unlikely to change that trajectory of the economy, especially for the next 6 to 18 months or so. And so focusing in on those expectations for the economy, it's better for that longer-term outlook for the markets", says Willis.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Nicholas Jacobino

Video Transcript

Every four years when we get into an election cycle or general election season and trying to best estimate how the market is gonna react to the campaign talking points and the debates as we get closer to Election Day.

And then, of course, the outcome.

What have we seen in election years past That might repeat itself this year and and is this year?

Perhaps I It's own bear.

It's it's own kind of differentiated event.

Yeah, you know, each election is different, but I think what they have in common is the potential to contribute to some market volatility.

And it's gonna be just one potential catalyst for that market volatility.

Uh, the closer that we get to the election.

Uh, what's important to to think about is that the trajectory of the economy is what matters most for markets and, you know, either election outcome.

But the economy is already on a trajectory, and any particular election outcome is unlikely to change that trajectory of the economy, especially for the next kind of 6 to 18 months or so, and so focusing in on those expectations for the economy.

It's better for that kind of longer term outlook for the markets.

Really solid perspective, insights and analysis.

As always, Veronica Willis, who is the Wells Fargo Investment Institute global investment strategist.

Great to see you here.

Thanks so much for taking the time, Verona.

Certainly.