The Effect of Political Uncertainty on the Economy

By Catherine McBreen, Special for  USDR

Since January 1, the political fortunes of Donald Trump and Bernie Sanders have soared, while U.S. investor sentiment has taken a sharp bearish turn, with the Dow and S&P each down more than 10  percent.

A December survey conducted by Spectrem Group with 500 prospective conservative and independent voters shows nearly one fifth (18%) cite the economy as their top issue for the 2016 Presidential  election.

Cathy McBreen, Managing Director of Spectrem and co-author of a new book highlighting this research, said it’s possible that growing investor uncertainty about the U.S. political process may be affecting markets.  Could growing political uncertainty about the outcome of the 2016 Presidential election be a contributing factor in recent moves by investors to dump  equities?

“Markets hate uncertainty, and investors are increasingly uncertain about who our next President will be,” said McBreen “Because there is a vast chasm between the proposals being put forth by the competing candidates, it is unclear to investors what the future direction of the U.S. economy and its financial markets will  be.”

“It may be that once clear leaders emerge from the upcoming Iowa Caucuses and New Hampshire Primary that the investors will begin to have greater clarity about who will run in the fall election.  Until that time, we may continue to experience high market volatility,” said  McBreen.

About the  Book
The Republican Dream Team of 2016© reimagines the political process in a way that would enable conservative and moderate voters to rally behind a unified “Dream Team” to win the Presidency in 2016. The book draws on research to identify the issues most important to conservative and moderate  voters.

About the  Author
Catherine McBreen is the Managing Director of Spectrem Group, a market research firm that has traditionally focused on research with high net worth investors as well as consumers and investors of all types. Catherine has been a frequent commentator in the media, including in publications such as the Wall Street Journal, USA Today, Investment News, American Banker among others.  She has appeared on CNBC and Fox Business as well as in regional media.  Catherine has been a frequent speaker at industry conferences.  In 2007, she published her first book, Get Rich, Stay Rich, Pass It On, in conjunction with her business partner, George Walper,  Jr.

SOURCE Catherine  McBreen

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.