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US markets will move higher regardless of who wins the election, strategist says

Once the nation gets past its turbulent presidential election, things will start looking up for U.S. markets, regardless of who wins, investment strategist David Bailin said Monday.

"For the last two months, people have been putting real money to work expecting an acceleration of the economy globally over the course of the next six to 12 months," said Bailin, Citi Private Bank's global head of managed investments.

In an interview on CNBC's "Squawk Box," he said that the uncertainty factor, which has held so many investors back, will be resolved once the country decides on its next president.

"People are going to be putting more money into the market when the election's over in general due to the fact that there will be certainty, we will know what policy is," Bailin said.

He said a Hillary Clinton win would mean stability, which many investors see as a good entry point. It would also be a positive for emerging markets, as global policy changes will shift the mix of where people should be investing, he added.

If Donald Trump wins, expect a correction shortly after the election, he said. "A Trump victory, based on looking at volatility, will basically cause markets to go down appreciably at the beginning, kind of like Brexit on steroids," Bailin said.

Regarding a long-awaited interest rate hike by the Fed, expected in December, he said such an event would add to investor certainty and thus would boost financial stocks and the overall stock market.

In fact, this could be "the longest potential post-recession recovery in history ... which is why the Fed acting makes sense," Bailin said.


Chantico Global CEO Gina Sanchez agreed that the election and the anticipated hike appear to be holding markets back from their full potential.

"When we get past these issues, I think the U.S. is set to come back to the top in terms of opportunity for global equities," Sanchez told "Squawk Box."

"On the whole … we're setting the stage for global rotation that will take the U.S. out of bottom and toward the top," she said.

Sanchez said markets are starting to see the beginning of the end of a profit recession, and, with some positive macro data, the U.S. could move past the recovery stage and into more of a rally.

Appearing in an interview with Sanchez, economist Chris Rupkey said the Fed's shifting focus may mean a different kind of outlook for markets.

"GDP was always the be-all, end-all, especially for us as economists, but if you look at the Fed forecasts, they're … 2.0 [percent growth] … all the way out to 2019," Rupkey told "Squawk Box" Monday.

Rupkey, chief financial economist at MUFG Union Bank, said the focus has shifted to job creation thanks to the baby boomer generation beginning to reach the age of retirement.

"[Bernie] Sanders and Trump … and Hillary are saying they want faster [GDP] growth, but I don't think it's really going to happen," Rupkey said in a nod to the Fed's outlook.

On the politics side, Sanchez said markets would fare better under a Clinton presidency than under Trump.

A Trump presidency, she said, would warrant a knee-jerk reaction from markets. "It would just be that uncertainty that would feed market fear," she said.