November 9, 2016
Markets were disturbed when it dawned on investors that Trump became the frontrunner for the presidency. The shuffling and rumble were the manifestation of adjustments in market expectation of a Clinton presidency. Paul Krugman, when apparently asked about the markets and its trouble at the time, glibly stated that the markets would be down forever because of the uncertainty and incompetence Trump represents and will reflect in his policies. Although the elections last night were disturbing, has the US market been fundamentally damaged? In the beginning, around 9-10 p.m. ET when Clinton was losing Michigan, Wisconsin, North Carolina and Florida, Trump became the favorite to win and uncertainty riveted the markets (the Mexican peso went down, safe-haven investments went up like gold and U.S. Treasury bonds, etc.).