25 Oct WEALTHSOUTH 2020 ELECTION FINANCIAL
Posted at 20:02h
in OUR INSIGHTS
WealthSouth 2020 Election Financial
- There is a lot of uncertainty right now around the outcome of the election.
- Many are understandably nervous right now given the uncertainty – we have many clients reaching out with concerns
- Just to highlight that uncertainty, the polls don’t help in clarifying the outcome …..
- Betting averages differ from actual poll averages – and poll averages often proven incorrect.
- Those sectors that may benefit from a Biden win have been outperforming so far. E.g. Infrastructure, Green Energy, Cyclicals – stimulus growth packages
- Vs. Trump – Tech, Growth Companies, Traditional Energy
- Uncertainty breeds volatility and we have seen that starting to increase marketedely
- As a reminder markets are forward looking and are pricing in a variety of scenarios, in fact many argue a blue sweep is already priced in.
- Clearly there is a margin of error in the polls and certainly within key swing states.
- The Senate is in a similar position with regards to turning over.
- Biden and the Democrats appear to have an advantageous starting point.
- All that being said it’s difficult to time trades based on the outcome. We are not in the business of timing the market from an economic cycle standpoint or a political one.
