How The US Presidential Election 2020 May Affect Your Investments

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It’s so close! The world is waiting in bated breath for the result of the US Presidential Election 2020. While we might have some hints as to who may win this election race, we still don’t know for sure until the results are out. But if you’re wondering what to do with your portfolio, we’ve got some tips for you.

Scenario 1: Biden wins the presidency; Democrats take the Senate
According to Aviva Investors, a Biden presidency might see markets respond positively on the prospects of an economic rebound in 2021 since a generous fiscal stimulus package would be more likely. However, the impact of tighter regulation under a Democratic administration may act as a head win over the longer term.

Scenario 2: Trump re-elected, Republicans take the Senate
On the other hand, Morgan Stanley suggests that equity markets could respond favorably in the event of a Republican sweep. Additionally, they predict that telecoms, U.S. energy and asset managers would likely get a boost from expectations for continued deregulation.

Similarly, “European equities may also rally on a Red Redux, with healthcare stocks leading the way” as per Morgan Stanley’s observation. On the flip side, the relative case for Europe and other global markets over longer term might not be as favourable under this scenario, compared with a Blue Sweep.

What You Should Do

While it’s good to stay updated on global news, keep in mind to focus on the long-term and not on short-term movements and predictions as an investor. Keep in mind to notice what politicians do, and not what they say while keeping your own political beliefs out of your investments decision making.

If you’re still uncertain, reach out to our trusted network of financial advisors on SmartSearch to help you keep on track with your financial goals.

Photo Source: fancycrave1 from Pixabay 

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Written by

Wani Azahar

Last updated on

November 5th 2020, 3:28 pm

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