US presidential elections have always captured the world’s attention, but this year’s election has become a global soap opera thanks to the intense media coverage and bitter tone of the campaign. The polarizing candidates will take the discussion of where America should be headed to a new level: the Democratic candidate, Hillary Clinton, under the slogan “Stronger Together”, will likely maintain the course established under the Obama administration, while the Republican candidate, Donald Trump, is pledging to “Make America Great Again”, indicating that fundamental change would be his course of action.
This paper reflects our view today, discusses recent polls, current dynamics, long-term themes, and addresses impacts for investors.
The election is one of many factors that could impact the direction of markets over the next few months and beyond. Investors should avoid making portfolio changes based primarily on potential election outcomes as it’s difficult to predict how the market might respond.