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Expect a Milder Market Once Candidates are Selected

It’s not uncommon for the market to be volatile in the first few months of an election year and then rebound once the candidates are chosen.

It’s not uncommon for the market to be volatile in the first few months of an election year and then rebound once the candidates are chosen. In fact, it’s pretty normal, said KC Mathews, chief investment officer of UMB Bank (UMBF). 'As the field thins, and you understand who the nominees will be around mid-summer, then the market behaves much better and you start to see a robust market in the second half of the year,' said Mathews. With numerous candidates still in the running, uncertainty stays high, according to Mathews. And as investors are constantly reminded, the market hates uncertainty. Mathews said the bottom of the market traditionally corresponds with determining a clear winner and he anticipates the stock market will ease back into place for good in the fall. As for the political rhetoric targeting certain sectors of the stock market, Mathews said investors should pay more attention to the candidate that is spouting it.