Bessemer Trust has released a research paper on the impact of the upcoming election on the financial markets. It addresses the following questions:
- How much do politics matter for markets, and how can an investor have an edge in anticipating political shifts?
- Should we throw out the polls?
- Is this election cycle going to be completely different due to COVID-19?
- Would a “blue wave” (with Biden winning the White House and Democrats taking the Senate and retaining the House) sink the markets or be a prelude to calmer seas?
- Does the vice president matter?
The Bessemer Summary is as follows:
- We share Bessemer’s investment approach in the lead-up to the November elections given what is likely to be a period of heavy news flow and at least some uncertainty in the investment landscape.
- Specifically, we explore the impact of politics on financial markets generally and focus on several key questions related to the 2020 elections and Bessemer’s portfolio positioning.
- As the situation inevitably evolves over the next several months, we expect to provide additional updates.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.