MORTGAGE BLOGPosted On September 27, 2016
The market slowed in anticipation of last night’s debate and this morning the majority of those stock-future gains remain absent. The debate was highly driven by the state of the economy, and traders are not making money moves in lieu of the uncertainty ahead.
Last night, Trump stayed consistent with the theme of his campaign aligning economic decline with the outsourcing of US manufacturing jobs. CNN reports that in the last 16 years, the US has lost 5 million manufacturing jobs, with cheaper labor overseas being one of the primary causes. He proposed in his economic plan that reducing the corporate tax rate, allowing for the repatriation of funds earned overseas, and penalizing companies who leave through import tariffs would halt companies from moving manufacturing overseas and cause those who have left to return.
Clinton proposed that her economic plan of focusing on infrastructure, renewable energy, and small businesses would create 10 million jobs, quoting a report from Moody’s Analytics’ Mark Zandi purporting that the nation’s economy would grow by 10 million jobs under Clinton’s plan.
The official CNN poll declares Clinton the winner with a decisive split of 62% for Hillary Clinton and 27% for Donald Trump. However, Fox News claimed that despite a media consensus supporting a Hillary Clinton victory, online surveys were largely in favor of Trump, highlighting the poll provided by the website the Drudge Report.
The presidential race has been remarkably deadlocked leading up to the first debate, and clashes on economy, race, and security continue to split the candidates.
“There is still plenty to play out, in this presidential election before we know the winner,” Richard Perry of Hantec Global Markets told Market Watch. Slowed market activity is expected during the election cycle, as is consistent with any impending economic changes.
Sources: The Economist, CNN, Bloomberg Politics, Reuters, CNBC, The Washington Post
