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Market update: How the US election presents a major risk event to financial markets Posted on October 20, 2020
Tuesday 3 November – US Presidential Election Day! Whatever your international political leanings, and whatever happens, investors need to prepare for further short-term volatility.
The markets don’t like unknowns, and there are many when it comes to the US Presidential election.
If Trump wins, the trade conflict with China is likely to be stressed.
If Biden wins, he will aim to recover the economy through taxes, targeting high net worth individuals.
CommSec believes the worst-case scenario is a contested election, where the result is not known for weeks. The markets are likely to respond negatively to an outcome like this.
It’s an uncomfortable level of uncertainty, but investors who are prepared, informed, strategic and clear about their short-versus-long-term financial needs and options will ride through this event.
Written by Ed Lok