Dow, S&P and Nasdaq, downward trends in place?

Certainly looks like all three of the major US indices are trending downwards as we head into the Presidential election. Who does Mr Market want to win?  A quick search on the web suggest's opinion is divided, but here is one view that just about sums up what is likely to happen regardless of who wins.

So, what does the outcome hold for the global equity and bond markets? Have the markets already discounted the poll outcome?

Says Dr. Andrew Freris, Chief Investment Strategist (Asia), BNP Paribas Wealth Management, “The US presidential election will involve a major political problem in resolving the "fiscal cliff" issues irrespective of who wins.”

“Just like in September 2011 when there was a short-lived bloodbath in the US markets over the related issues of the US downgrade and the raising of the fiscal ceiling, the inability (or unwillingness) of the US politicians to resolve the fiscal issues before the elections, means that after 8 November and till 31 December (the fiscal deadline), there could be a lot of volatility in all equity markets,” he adds.

“There will be some changes in policy, particularly concerning fiscal issues, but overall, despite the fact that Americans are presented with a very clear choice between Obama and Romney, I don’t think we are going to see any big shifts in any particular direction, irrespective of the outcome,” noted Alastair Newton, Senior Political Analyst, Nomura in a report dated October 29.

“For big picture policy, although the election is important, we are still going to be dealing with a deeply divided Washington, where resolving some of the major challenges facing America like long-term debt and deficit issues is going to be a severe challenge,” Newton points out.

http://www.business-standard.com/india/news/web-exclusive-us-pollsits-impactglobal-markets/194421/on

Charts;

Dow

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Nasdaq