The Shadow of US Elections On the Stock Market

It is known to everyone that presidential elections will be held in the United States of America in November 2020. Since, this nation is a major economic power, the stock market performance is also heavily influenced. The world is desperately watching all the events but most investors, businesspersons in Asia are assuming that US President Donald Trump will lose this election. Donald Trump who is no stranger to controversies has also failed to protect the nation from burgeoning Covid-19 infections. Economy of a nation, its political environment also affects the stock market. It is seen as a positive sign when the incumbent party retains power but the loss is believed to be a major setback.

Risks are always a part of the stock and share market and you can always take help from free online trading sites in UAE. The investors are also worried during major political events because they are aware about the risks and fluctuations of the market. Trade and business in UAE can also get affected due to events in the United States of America. The stock market does not fluctuate or gets affected with the reelection of the incumbent parties, at least this is the trend. We are living in the age of globalization and currency trading UAE is affected by international events. The outcome of the election result is going to have a major impact on the stock market. It is generally seen that victory and loss of republicans culminates into polarising outcomes. So, if you are planning to sell equities due to your belief that Donald Trump is going to lose elections then it could be a short term mistake.

Take a glimpse at old records

In the last seven decades, it is a record that no incumbent US president has been re-elected when the country was under the grip of recession. This year not only there was a decline in the stock market but the economy was adversely affected due to the outbreak of coronavirus pandemic. Most voters have harboured negative feelings and the investors are worried about their future. The approval ratings of Mr Donald Trump are pathetic. With such poor approval ratings, he is not likely to get re-elected. However, as Mr Biden, the chief rival of Mr Donald Trump has failed to get an upper hand despite the fact that the incumbent president failed to handle the pandemic.

The current situation is very challenging. Unemployment rate is touching new heights. Many voters are assuming that Mr Biden will emerge victorious but he might meet with the same fate of Hillary Clinton. In the ongoing fluctuations, it is better to consult experts of the best online trading website UAE prior to making a move. As the election date is coming closer, most of the investors are becoming desperate.

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