Market Roundup – Oct-16

Observers often use the average performance of the S&P 500 before and after mid-term elections to reassure investors. But the best post-election performance happened just after recessions or crises, while the rest are less convincing. The coming two years are likely to be governed by a divided government, fading fiscal impulse, and continued inflation risks. Markets are likely to see higher volatility, shifting asset class performance and a need to diversify exposure.