As we inch closer to the U.S. presidential election, our new CIO Special – U.S. Election: America goes to the polls, explores the current state of the political landscape, key issues and policies that continue to shape the narrative for the race and its potential impact on a range of sectors for equity investors.
Key takeaways:
The economy, inflation, geopolitical concerns, reproductive rights and immigration controls are the leading issues that will decide the outcome of this election.
Despite short-term volatility in markets around election season, the performance of the S&P 500 is agnostic to whichever party takes control of the White House and has never declined during a presidential re-election year.
Highly regulated industries such as healthcare, energy and financials may experience more volatility during election season; policies surrounding tax cuts and increased child tax credits can positively impact consumer discretionary and technology sectors; a climate and green energy focused agenda and complementary policies could be tailwinds for the renewables sector.
