I really don’t want to write about the U.S. election, but I feel I must. It comes up in almost every client meeting. Why the reluctance? Well, there’s no other way to put it — the U.S. election is seriously overhyped when it comes to investing. It doesn’t crack my list of top fifty factors that will drive portfolio returns over the next one, three and five years.
I know what you’re thinking. How can that be? The next U.S. President and Senate majority will set policy related to trade, health care, and the environment. Yes, the pace of progress in these areas will be affected, but the impact will be modest compared to the influence of broader economic and social trends.
tap here to see other videos from our team.
Unfortunately, a list of these trends is too long to cover here, but hopefully a sampling will reveal where the Nov. 3 outcome ranks. Few of the factors appear to have the immediacy of an election, but any change in sentiment or direction can quickly impact corporate fortunes.