Here Are 3 Ways A Contested Election Could Play Out–And What Each Means For The Market

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Here are 3 ways a contested election could play out—and what that means for the market:

The odds of a close–and potentially contested–election have heightened in recent days, and LPL Financial Chief Investment Officer Burt White outlines three ways financial markets could respond to a delayed or disputed election outcome, ranging from largely negligible to a full-on correction of 10% or more.... [+]Key Facts

In a second scenario, a close election or charges of voter fraud at the state level trigger a recount that sends broad equity indexes plunging by about 5% to 10%. The final scenario, characterized by a disruptive legal or legislative battle, could arise"if the polarized nature of our political environment and the already fragile state of the economy [prompts] the market to price in the potential business risks of government dysfunction," White says.

 

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