The election cycle will increase short-term volatility, but we don’t believe it will have much influence on market averages over the long term.
While every US presidential election is contentious, this year’s race seems especially divisive. Partisanship is extreme, and the difference between Donald Trump and Joe Biden in approach, personality and behaviour is stark. The charged rhetoric may increase the uncertainty and anxiety for investors as we approach election day. Most recently we saw evidence of this anxiety as the market reacted to news of President Trump’s positive Covid-19 test. Click now to learn more
