The historic guilty verdict of former President Donald Trump could cause more market volatility around the 2024 election, but that might not be so bad for investors, said Ed Yardeni of Yardeni Research. Instead, it’s an opportunity for investors to buy, he told Yahoo Finance.
“Any sell off in the market related to a geopolitical crisis or a domestic political crisis may actually turn out to be a buying opportunity,” Yardeni said. “The market will continue to focus on what is most important, and that’s the economy, and if politics affect that, then that will obviously have an impact on the stock market.”
The stock market didn’t react significantly to the verdict during trading on Friday, but that may change. The VIX, known as the fear gauge index, will “likely get a strong bid” by the middle of the summer, said 22V Research Senior Managing Director Kim Wallace, as investors start to indicate how the market will respond to various election outcomes.
So far, the VIX has been calm, while the CBOE Volatility Index closed below 12 last month—the first time since 2019—and sits under its traditional average of 19.9.
