While elections are important to any functioning democracy, to investment professionals, elections are primarily significant due to their effect on portfolios. In particular, investors must understand – and anticipate – the correlation between the outcomes of the election and the markets, if any.
U.S. dollar strengthened in September as the effects of existing monetary stimulus wane and expectations for fiscal stimulus before the election fade. Market participants bid up financial asset risk premia in response to mounting economic and political risks. We encourage investors to keep their investment horizon in focus and not allow emotions to influence portfolio positioning.
While it is common perception that the political party in the White House drives markets and the economy, history shows us that neither party can consistently be credited with superior economic or financial market performance.
Does the upcoming election mean it's time to reassess your portfolio? A historical look at presidential elections & the stock market can help you decide.
All elections are important, but to many investors, the coming election feels particularly weighty. The policy ramifications of White House and congressional outcomes can seem unnerving, especially given the wide policy differences and, in some cases, dramatic policy proposals.
The rebound in global assets continued in August, led by U.S. large cap equities, but value showed signs of life in Europe and China pulled emerging market equities into positive territory year-to-date.