Here’s a reassuring message about the outlook for the stock market as Americans go to the polls to vote: the markets will be fine no matter which candidate lands in the White House.
So says Doug Peterson, CEO of S&P Global. And he should know: Peterson’s company owns the S&P 500 stock index, one of the broadest measures of stock market performance.
Peterson tells Fortune’s Susie Gharib that the day after the election, there could be a “big drop or a big uptick” in stocks. But he says that knee jerk reaction is usually misleading. What really counts is the economy and Peterson believes things are looking up for the U.S.
“Our banking system is very strong. We have strong capital. We have strong liquidity. Our labor market has been improving,” he explains. “We still have a very resilient economy and very importantly, we have a very innovative economy.”
Despite that optimistic outlook, Peterson still has some advice for America’s next chief executive.
“Reform our tax system,” he says. “We have an opportunity to simplify it and to make all of that extra cash that people would save go into building businesses, investing in jobs, and growth.”