Markets Brace for Possible Trump Win, But Muted Volatility Expected
• Traders are better prepared this time and have priced in the possibility of a Trump win, so markets likely won't see the same volatility as in 2016.
• A Trump win could put upward pressure on bond yields and bolster the dollar.
• Tariffs could help the dollar by curbing imports, but hurt trading partners' currencies like the Mexican peso and Chinese yuan.
• Stocks remain focused on the Fed and economy rather than election, though certain sectors like defense and infrastructure could benefit under Trump.
• Overall market reactions are hard to predict based on political outcomes at this point in the economic cycle.