BofA: US Stocks May See 5-10% Correction on Rising Election UncertaintyA research team at Bank of America commented that increased uncertainty over the US election could lead to a pullback in equities in the coming months, and it expected market volatility to increase, with a possible 5% to 10% correction in US stocks.
Savita Subramanian, head of US equity strategy and US quantitative strategy at BofA, said the market may have overestimated the impact of politics on the market.
However, she noted that individual sectors may be under pressure due to a potential change in leadership in the White House, and she also expected volatility indices to pump up during the campaign.
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Healthcare stocks' exposure to government contracts exposed them to both Democrats and Republicans.
Green energy stocks could also be affected by a Republican White House. Technology stocks will face additional regulation if the Democrats remain in the White House, and smaller regional banks will also face more regulatory risk.
Still, BofA maintained a positive outlook on the US economy, which the bank considered strong even as it cools.
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Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
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