US Presidential Election Years offer unique investing opportunities.
This is the most contentious and unusual Presidential Election Year in memory. This election cycle, both candidates from the major parties face significant hurtles.
Here are 5 possible trends to play into if you structure you portfolio for this unusual period.
1 Market Volatility: Presidential election years tend to see heightened market volatility due to uncertainty surrounding the election outcome and potential policy changes.
2 Increased Trading Volume: With heightened interest and uncertainty, election years can see increased trading volume, offering potential opportunities for active investors.
3 Geopolitical Tensions: Depending on the candidates' foreign policy stances, geopolitical tensions might arise, impacting investments in certain sectors.
4 Infrastructure Spending: Presidential candidates often propose infrastructure spending plans as part of their campaign platforms. Investors may anticipate increased government spending in areas such as transportation, utilities, and construction, leading to potential opportunities in related stocks and infrastructure funds.
5 Interest Rates and Monetary Policy: Presidential election years can influence Federal Reserve policy and interest rates. Candidates' economic proposals may impact inflation expectations, which in turn affect bond yields and equity valuations.
Market Volatility: Presidential election years tend to see heightened market volatility due to uncertainty surrounding the election outcome and potential policy changes. Investors may exhibit cautious behavior, leading to fluctuations in stock prices and increased trading activity.
Increased Trading Volume: With heightened interest and uncertainty, election years can see increased trading volume, offering potential opportunities for active investors.
Infrastructure Spending: Presidential candidates often propose infrastructure spending plans as part of their campaign platforms. Investors may anticipate increased government spending in areas such as transportation, utilities, and construction, leading to potential opportunities in related stocks and infrastructure funds.
Interest Rates and Monetary Policy: Presidential election years can influence Federal Reserve policy and interest rates. Candidates' economic proposals may impact inflation expectations, which in turn affect bond yields and equity valuations. Investors closely monitor central bank decisions for signals on future monetary policy direction.
The information contained in this Higgins Capital communication is provided for information purposes and is not a solicitation or offer to buy or sell any securities or related financial instruments in any jurisdiction. Past performance does not guarantee future results.