The market has had a great year, but it has cooled its jets recently. The reference S&P 500 Index fell just under 1% in October. The impending US presidential election is one factor that could prevent the market from extending its uptrend. Polls suggest the race between Vice President Kamala Harris and former President Donald Trump is extremely close.

Regardless of who wins, billionaire investor Ken Griffin is predicting new all-time highs for the market after the election. Here’s why.

Removing uncertainty

While it is said that the market is going up a “wall of worry“, uncertainty is rarely like your friend as an investor, and it can sideline many people. It’s especially intimidating for professionals managing millions of dollars who can potentially lose their jobs if they know a bad year.

The presidential election between Harris and Trump has brought nothing but uncertainty. The race is close and the two candidates would feature different regulatory regimes, tax policies and policies. and other projects this could impact the economy and inflation to varying degrees. Investors likely prefer Trump’s tax plans, as he would likely keep corporate taxes lower or at least at current levels, and attempt to extend tax cuts implemented by his administration in 2017. However , investors probably aren’t as excited about Trump’s plans for tariffs; Global markets struggled when Trump used them during his first term.

On the other hand, Harris will likely propose raising the corporate tax rate and some taxes on millionaires and billionaires. However, Harris has also proposed numerous plans to help low- and middle-income classes, which could boost overall gross domestic product.

There will also be winners and losers in the stock market depending on who wins. The stakes are high for the crypto, banking, homebuilder, and electric vehicle industries, among others. Many investors are trying to position or potentially hedge their portfolios based on which candidates they think will win, and other investors may wait until after the election.

That seems to be what billionaire investor Ken Griffin thinks. Griffin is the CEO of Citadel, one of the world’s largest hedge funds, so Wall Street generally pays close attention to him. Speaking at the Future Investment Initiative forum in Saudi Arabia this week, Griffin said he thought the anticipation of the election had been more trying than anything else:

Reducing uncertainty is almost always positive for asset prices, and we are at this moment of maximum uncertainty in a race that Trump is favored to win, but it’s almost a coin toss, so I would say that ‘After the election, we will generally see In a risk-prone environment as people adapt and adopt a new regime, whether it’s the Harris regime or the Trump regime, that uncertainty will be behind us.

Griffin may be right here. While the walk has performed better or worse under certain parties and depending on who controls Congress, Vanguard research did not find a statistical correlation between the performance of a common investment portfolio (60% stocks and 40% ‘bonds) during presidential election years and non-election years.

There are so many different factors influence the markets At any given time, Vanguard believes it is difficult to attribute market performance to any specific cause, even if it appears as consequential as the U.S. presidential election.

Expect short-term volatility, but don’t panic

The market will likely be volatile in the coming weeks due to many important factors, including the election, the upcoming Federal Reserve meeting, and ongoing geopolitical tensions. However, the conclusion of the election should allow the market to put much uncertainty aside, potentially paving the way for its gains to be extended and new all-time highs to be reached. Long-term investors do not need to worry about short-term volatility, but should try to understand why it might occur, so that they are not caught off guard and can therefore make better decisions.