The market and Congress are locked in a high-stakes game of chicken — and who blinks first will ultimately determine where stocks go next | Markets Insider

on Tuesday that includes a $300 federal supplement to state unemployment benefits and another round of small business aid.

The scenario heading into the fall is a"chicken or the egg situation," Seema Shah, chief strategist at Principal Global Investors, said in an interview.A strategist at the world's largest wealth manager lays out 4 election-related risks that could damage investors' portfolios — and shares how to safeguard against each one now, regardless of who wins

Waiting any longer jeopardizes a new deal in its entirety. Shah noted that governments are"increasingly reluctant" to increase their fiscal spending as their deficits surge, making debates for passing new stimulus"tougher and tougher." Should policymakers take too long and fail to pass a deal, she sees the resulting investor reconciliation likely driving a steep sell-off.

The market wants to see"some genuine thinking behind where the money is being allocated," she said. The CARES Act already pushed the US deficit to new records, and inefficient spending would only inflame fears of a future budget crisis.GOLDMAN SACHS: Buy these 19 stocks right now for big future gains once a COVID-19 vaccine is available

That downside could fuel a market reckoning akin to that seen at the start of the coronavirus pandemic, said Shah, citing the dislocation between stocks and the economy. In her mind, that makes stocks especially vulnerable to a sudden shift in sentiment.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Here's what typically happens to the market next after big tech stock washouts like this oneNew for subscribers: Here's what typically happens to the market next after big tech stock washouts like this one Check out CNBCPro today. Pro Empresa gigante como a Apple nunca irá desvalorizar. Pro These old fart guests you have need to stop saying the economy is good because the markets are good! Wall Street ISN’T Main Street!
Source: CNBC - 🏆 12. / 72 Read more »

Tesla, Nasdaq, Apple: What to Watch When the Stock Market Opens TodayTesla, Nasdaq, Apple: What to watch when the stock market opens today China Gives Signal of Time To india,india Go in iran For Double Cross,Big Legions of All Arab Destroy China &Parachute Bombs Can Stop AntiCrafts of China Domain Planes+China Stability in Arab UnMatch Oil,SAARC+Bangal+Behar+Punjab+Rajhistan Unity Destroyed By Shia Bhutto Side, Tesla stock price target is $2500!
Source: WSJ - 🏆 98. / 63 Read more »

Investors are buying the dip for now, but the market rout is likely not overThe market's quick correction cleared away some speculative froth, but there is likely to be more choppy trading before stocks can head back to highs. Good. I missed a chance to reverse my money flow out of bonds and into equities. Be nice to get another chance. You Guys post some real pessimist, Debbie downer sht. This America. Also DDTG stoolpresidente say STOCKS ONLY GO UP!
Source: CNBC - 🏆 12. / 72 Read more »

Dow soars 440 points as sharp tech turnaround leads market-wide rebound | Markets InsiderSpencer Platt/Getty Images US stocks climbed on Wednesday, ending a three-day sell-off that saw the Nasdaq composite decline more than 10%.Tec...
Source: BusinessInsider - 🏆 729. / 51 Read more »