Who's good for markets: Analysts say neither Trump nor Clinton

Best candidate for the markets?

When it comes to the stock market, the effects of the presidential election are difficult to predict, according to analysts.

On one hand, they say there's Hillary Clinton, whose policies would remain largely the same after the Obama administration; on the other, there's Donald Trump, described as an economically driven wild card ready to make changes.

This level of uncertainty has the power to leave the market "very unsettled," Citi Private Bank Global Head of Managed Investments David Bailin told CNBC's "Squawk Box" on Monday.

"Volatility is extraordinarily low, on the one hand, and on the other hand, the policy divergences are extraordinarily large," he said, noting the unusual circumstances leading up to Monday night's first presidential debate between Trump and Clinton.

"I think neither candidate has super market-friendly policies," Dean Curnutt, CEO of Macro Risk Advisors, said on CNBC. "Both have been reasonably anti-trade. Clinton was pulled pretty far left by Bernie Sanders. Trump's policies really resemble very little of what we typically associate with free-market Republicanism."

Fed the elixir amid political uncertainty?

Meanwhile, Trump has said he would not reappoint Janet Yellen as chair of the Federal Reserve, a move Curnutt believes would pose a threat to what he called a "delicate balance" of monetary policy aimed at generating more inflation while keeping the economy moving.

The Fed's inaction with interest rates this year has been "an elixir, in some ways, for the markets," said Curnutt, and a way to calm markets ahead of the debates and the November election.

More than anything, investors want specifics on the candidates' policies, especially in the face of all-time highs that suggest potential for downside, said Bailin, whose firm has been telling clients to hedge their equities given the falling status of the fear-gauge VIX.

Investors heard similar guidance during Brexit, which turned out to be a bull market event in the months following the vote, Curnutt said.

But Great Britain has yet to start the official proceedings for its exit from the European Union, he noted, suggesting its long-term financial future is still subject to volatility.