After a slugfest of a campaign, voters are likely happy that Election Day will bring the whole ugly spectacle to rest. Unless, of course, a Clinton win is contested by Donald Trump or his camp. Such a situation would have economists and investment pros, as well as voters, reaching for the antacid.
"Any time there's uncertainty, markets will react," said Lawrence J. White, an economics professor at New York University's Stern School of Business. Unlike previous business-friendly GOP candidates, Trump's hostility to globalism and his threats to reverse trade agreements have pushed companies into a holding pattern that has kept financial markets on edge.
A contested result will slow market momentum
According to an analysis of quarterly conference call transcripts conducted by Reuters, executives from more than 80 companies have referenced the election as a challenge to their performance. To the extent that the grueling presidential campaign has had an impact on business, economists warn that a contested result could continue to act as a brake on the market's momentum.
"If this race turns out to be closer than what the polls are indicating right now, the chances of a contested election are high," said Peter Cardillo, chief market economist at First Standard Financial. "That means the saga of this election does not end tomorrow."