Prepare for the US presidential election
Submitted by akordionline on Thu, 08/13/2020 - 13:18
Prepare for the US presidential election With the US elections fast approaching on the horizon, traders worldwide are preparing to act. If President Trump is re-elected Since Trump is viewed as a pro-business president, shares and major indices such as the Dow Jones may increase, while safe haven instruments may decrease. If President Trump loses Presidential nominee Joe Biden could undo many successful policies that have fueled the stock market in recent years including corporate tax cuts and deregulation. This could have a negative effect on stocks and indices. What happened last time? Following Donald Trump’s victory In November 2016, the Dow Jones rose – and then kept climbing, adding over 35% by the end of 2017. This year, the Dow Jones increased by over 45% between March and July. Any outcome can ignite volatility No one knows who will win. For the time being, most polls give Biden a clear advantage… but of course, they did the same for Hillary in 2016, an election Trump won decisively. On the other hand, historically, sitting US presidents tend to lose when there’s a recession during an election year.