BLOG- Understand the Outcome of the US Elections on the Global Stock Market

Understand the Outcome of the US Elections on the Global Stock Market

It is now clear that Joe Biden is the new president elect of the United States of America. It was a long and tiresome battle for the 77 year old veteran democrat. Victory over incumbent President Donald Trump was not easy. America had to pay a massive price during the pandemic of Covid 19 as thousands of citizens lost their life. In such a challenging time, everyone was looking at national leadership for relief measures. President Donald Trump failed to win the sympathy of American voters. Moreover, Joe Biden was also a very strong contestant.

Financial experts around the world keep a tab on such development. Every leader, new government in the United States has its unique set of ambitions. So, if you are an investor then take a look at your portfolio. Make a necessary analysis if you habitually try hands on currency trading UAE. The US presidential election always affects the global stock market. Economy of various nations is directly influenced during this monumental political festival that occurs after every four years. Luckily the S&P 500 is known to deliver positive performance even in past election sessions. When the S&P 500 performs positively, it is a major indication that a sitting president would be elected once again whereas the negative performance of S&P 500 is a hint that a new government will take the power.

Policies of republicans and democrats

Many regular and important market aspects were eclipsed in the shadow of Covid-19 pandemic. Most investors are worried how different outcomes might affect their investment portfolio. Surely, the outcome of the election will affect the performance of US stock markets. If you will check the historical data, it can be noticed that stock market volatility enhances due to political uncertainties. Republicans are known to favor such policies that boost earnings of the company along with profit of shareholders. On the other hand, democrats generally concentrate on redistribution of wealth.

Is change of government a good sign?

Market is stable when the incumbent US president gets a second term. Uncertainty arises when power is transferred from Republicans to Democrats. There is a possibility that this can lead to negative impact on stock prices. Moreover, there are other changes as well such as higher corporate taxes and tougher regulation. The US economy is already struggling with an unprecedented recession. Most people openly criticized Trump for his pathetic management during the pandemic. Unfortunately, the United States is now the worst hit nation of the Covid 19 pandemic. Millions of people have lost their jobs and the government debt is skyrocketing. So, consult with experts prior to trying your hand on the best online trading site UAE. Analyze your portfolio once again. Many investors are still convinced that their capital gains will be somehow protected even if a new government is formed.

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