The U.S. elections on November 3 could bring significant changes to fiscal policy and the economy in the next four years, with important implications for capital markets. The outlooks for federal spending, taxes, regulation, health care, the environment, and trade policy hinge on who wins the presidency and has control of Congress.
As examined in a just-published report, there are potentially huge implications of the election outcome on the financial markets. Specifically:
Biden’s proposals bode better for economic growth on a 1-2 year horizon given weak current demand, but embody greater risk thereafter.
Biden’s fiscal proposals imply higher risks for equities, bond and the U.S. dollar compared with Trump’s.
The campaign proposals of both Biden and Trump would significantly increase the federal budget deficit and debt in the years ahead, from already projected high levels, potentially to the detriment of the U.S. dollar.
This, in turn, may finally prod equity investors to begin to venture beyond the U.S. bourse.
All Research Highlights
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.