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Trump VS Clinton: A presidential Comparison
With Brexit still fresh in people’s minds, the markets are looking at the US election and responding with similar anxiety regarding the outcome. Volatility has returned and the Australian market is in lock step. The stage is set for another “it couldn’t possibly happen”moment so investors have decided to sit on the sidelines waiting for a result next week.
The media tells us that Republicans have Trump one point ahead of Clinton whilst the Democrats have Clinton one point ahead of Trump. Whilst the result is no doubt going to be close the media is having a field day with the theatre of it all.
So what are the ramifications of a Trump victory or Clinton victory? The attached paper penned by Fidelity Investments has unpacked the issues and combined facts with their experience to prophesise a verdict.
We know:
- historically US equities have performed better under Democratic presidencies;
- in the short term, a Trump victory would be seen by the market as presenting more risk and as a result create greater uncertainty and volatility.
The Fidelity report focuses on the macro economic and broader market implications over the long term. It addresses the signature policies of each candidate and also summarises information that has been lost in the static of media frenzy.
Enjoy the read.
