01/10/2020
For those investors are concerning the US election, here are some update on Impact on US Election to markets:
> Polls getting tighter and will probably remain tight until election day & this will mean less visibility and more volatility. Most likely outcome is a very close result and very well may be contested in some states.
> It appears that markets have gotten comfortable with Joe Biden and don’t necessarily see his election as a negative. This is likely because Biden is a known entity, viewed as a very moderate consensus builder. Choosing Kamala Harris as his running mate likely solidified his moderate platform and removed one of the risks that the democratic party would move far to the left.
> The progressive platform that several primary candidates ran on may have led to significant change. However, if the democrats sweep all three branches and are in control, it’s likely we could see some volatility as many would see this as the pendulum swinging towards a more progressive stance.
> That said, markets could react positively to Trump’s re-election. His pro-business, low tax, low regulation polices would be anticipated to continue to support economic growth.
> In either case, investors should remember that while this is a very important election cycle which will have significant implications on our society and our economy, ultimately markets and the economic growth are driven by corporate fundamentals.
Source: Franklin Equity Group (30.09.20)