I Wouldn't Buy the Markets If Democrats Win: Pro
A Republican victory in the U.S. Presidential Elections would be a good thing for markets, says Mark Matthews, Head of Research Asia at Bank Julius Baer.
Speaking to CNBC's “Cash Flow” on Thursday, Matthews said he would not invest in U.S. stocks if Democrats hung on to power in November.
"I would not buy the markets if Democrats win,” Matthews said. He added that while markets may take issue with some of Mitt Romney's plans, they would still prefer a Republican victory to four more years under President Barack Obama.
"I think on the whole market would still react positively because of all the pro-business things that Romney would do that Obama wouldn't do,” he said.
However, Matthews adds that investors do not like Republican presidential nominee Romney's insistence that there is no need for further monetary stimulus, and the fact that he would not support the reappointment of Federal Reserve Chairman Ben Bernanke.
"The thing markets won't like about Romney is that he has been emphatic that Bernanke will not be reappointed in 2014,” Matthews said.
Bernanke's second term as the Fed Chairman expires on January 31, 2014.
Under law, the President appoints the seven members of the Federal Reserve's Board of Governors who are subject to confirmation by the Senate.
The Chairman and Vice-Chairman are then chosen by the President from the sitting Governors; these appointments also need approval from the Senate.