With less than two months until the 2020 Presidential Election, tensions are high as many investors are wondering who will be the leader of the world’s largest economic power. With the possibility of a new President, the impacts that a president can bring on policy, foreign relations, and laws can be instrumental for determining the performance of many markets.
Tom Hainlin, a national investment strategist at U.S. Bank, points to the healthcare sector as a market to look out for. He believes that the volatility will depend on whoever wins the election. With the global prevalence of the COVID-19 pandemic and the harsh differences between the healthcare platforms for both candidates, healthcare companies, ranging from digital health to pharmaceuticals, will be especially reactive to the presidential election.
In addition, there’s speculation around the energy sector, especially because of the rising popularity in issues surrounding clean energy and climate change. The performance of many energy stocks, whether they’re involved in fossil fuels or green energy, will be especially volatile and the outcome of the election will have a large impact on the performance of these stocks, especially since energy is such a hotly contested issue.
When investing, especially during the election seasons, it’s always important to research each candidate’s policy and watch out for companies that might be greatly affected by the election’s outcome. Both the Democratic and Republican party favor different sectors of businesses and each investor should be ready to act when the election outcome is revealed.