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How the outcome of the U.S. election could impact investors

This photo combo of file images shows U.S. presidential candidates Donald Trump, left, and Hillary Clinton.

Mary Altaffer / Chuck Burton/AP Photo

Globe editors have posted this research report with permission of Manulife Financial. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:

If Trump wins the White House, and the House and/or Senate is controlled by a Democrat majority, the markets may anticipate continued political deadlock. The same holds true if Clinton wins the White House, and the House and/or the Senate is controlled by a Republican majority.

So the bigger question might very well be what happens in the down-ballot races? While forecasts project a possibility that the Senate will shift to a Democrat majority, most are not predicting the same shift for the House of Representatives.

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From an investing perspective, it is important to note that markets never behave that predictably and simplistically, nor do they move lockstep with political decisions. For example, after the Brexit vote, the UK stock market (as measured by the FTSE) surprised everyone and moved up over 14 percent.

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