This issue of Oliver’s Insights looks at the November 6 US Presidential and Congressional elections and implications for share markets. The key points are as follows:
- The November 6 US Presidential election has more significance than usual given the policy differences between the two candidates and urgent need to reduce the “fiscal cliff” that will be reached on January 1.
- Ultimately the “fiscal cliff” is likely to be averted, helping a continuation of the rising trend in shares, but uncertainty around it & the approaching US debt ceiling could contribute to a bit of nervousness over the next few months.
- Mitt Romney’s business friendly policies would seem to be more positive for the share market, but bear in mind that historically US shares have performed better under Democrat Presidents and Romney’s commitment to not reappoint Fed Chairman Bernanke in January 2014 when his term expires is a possible negative.
To read this edition of Oliver’s Insight, click here.