Wall Street's biggest bull outlines 8 reasons why markets will rip higher if Trump wins

Stocks are rallying on Monday following news that the FBI found no reason to charge Hillary Clinton after its review of the new emails linked to her use of a private server.

This is seen as a "relief rally" that calms concerns about Donald Trump winning the election. Gary Shilling, like many other economists, said a Trump win would be unsettling to the stock market.

In a note on Monday, Fundstrat's Tom Lee said that although there would be a stronger rally if Clinton wins, stocks would still rise if Donald Trump is victorious.

Here are his eight reasons why:

  • Markets already discounted a Trump win with the recent 4% slide.
  • A Trump win could put Republicans in charge of the presidency, the House and the Senate.
  • More than 100 business leaders have endorsed Trump, including Carl Icahn and John Paulson.
  • The market's performance is driven more by economics than by who is president. "Many investors will identify strategies based on the specific platforms of the candidates and eventual winner—this is intuitive and logical," Lee wrote. "We looked at 6 precedent contested elections, and interestingly, found that portfolio strategy tended to follow prevailing economic trends, rather than platforms."
  • Markets did well even under unpopular presidents like Lyndon B. Johnson.
  • The "enormously unpopular" Affordable Care Act, or Obamacare, will likely be repealed.
  • There are merits in Trump's economic plans including corporate-tax cuts and higher infrastructure spending.
  • Investors would focus on Trump's potential to reform Washington, or "drain the swamp" as he says. ​​​​​​

Must-win states for Donald Trump
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Must-win states for Donald Trump


Republican presidential candidate Donald Trump pumps his fist in the air during a campaign rally at the Collier County Fairgrounds on October 23, 2016 in Naples, Florida. Early voting in Florida in the presidential election begins October 24. (Photo by Joe Raedle/Getty Images)


US Republican presidential candidate Donald Trump speaks at a rally at The Champions Center Expo in Springfield, Ohio, on October 27, 2016. (Photo credit PAUL VERNON/AFP/Getty Images)


Donald Trump, 2016 Republican presidential nominee, speaks during the 2nd annual Roast and Ride hosted by Senator Joni Ernst, a Republican from Iowa, not pictured, in Des Moines, Iowa, U.S., on Saturday, Aug. 27, 2016. Ernst, who in 2014 won the Senate seat vacated by Democrat Tom Harkin when he retired, has turned her Roast and Ride into the conservative answer to the Harkin's legendary Steak Fry fundraiser, which auditioned dozens of presidential candidates over its 37-year history. (Photo by Daniel Acker/Bloomberg via Getty Images)

North Carolina

Republican presidential candidate Donald Trump speaks to supporters at a rally on September 12, 2016 at U.S. Cellular Center in Asheville, North Carolina. Trump criticized Democratic rival Hillary Clinton for saying that half of his supporters belong in a 'basket of deplorables.' (Photo by Brian Blanco/Getty Images)


Lee sees the S&P 500 rising to 2325 by the year-end, which is an 11% jump from current levels and the most bullish forecast among top analysts. The median forecast according to Bloomberg is 2175, or +4% from here. That implies the consensus sees stocks moving higher regardless of who wins, provided many analysts don't change their year-end forecasts after the election.

NOW WATCH: LIZ ANN SONDERS: The most unsettling outcome for the markets would be a surprise Trump win

Donald Trump's long history of presidential runs
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Donald Trump's long history of presidential runs

1988: Donald Trump is widely publicized as saying the world is 'laughing at America's politicians' but, ultimately, did not begin a campaign

(Photo by: The Ring Magazine/Getty Images)

New York developer and potential Reform Party presidential candidate Donald Trump (L) and Minnesota Govenor Jesse Ventura (R) take questions at a news conference after Trump gave a speech at a Chamber of Commerce luncheon 07 January 2000 in Brooklyn Park, Minnesota. (Photo credit should read CRAIG LASSIG/AFP/Getty Images)

2004: Trump stated he was "very seriously" considering a bid for the White House.

(Photo via REUTERS/Jeff Zelevansky JAZ)

2008: Trump said he would not run for Governor of New York, but a source close to the businessman said he was "definitely interested in running for president."

(Photo by Bill McCay/WireImage)

Businessman and possible Republican Presidential candidate Donald Trump speaks at the Greater Nashua Chamber of Commerce Expo luncheon in Nashua, New Hampshire May 11, 2011. (Photo via REUTERS/Brian Snyder)
Donald Trump (C) announces his endorsement of Republican hopeful Mitt Romney (R) with wife Ann (L) at Trump International Hotel & Tower February 2, 2012 in Las Vegas, Nevada ahead of the February 4 Nevada caucus. (Photo credit should read STAN HONDA/AFP/Getty Images)

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SEE ALSO: GARY SHILLING: A President Trump may be negative for stocks, but great for these 2 assets

DON'T MISS: Here's what happened the last time a shocking election result caused chaos in markets

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