US Election 2024: Stars, Stripes and Stocks

As the US election nears, US political twists and turns will have an increased impact on certain stocks and sectors, and broader markets in general. Given the rapidly changing landscape (and we still have more than three months to go!) and broad range of policy uncertainties, it’s understandable if investors feel a little confused and unsettled. It’s important to remember, however, that while elections can create short-term market volatility, during these periods of heightened political focus markets typically tend to overemphasise the importance of politics on the market’s performance over the long-term. Markets have done well under both Republican and Democrat leadership, including the last eight years under both Presidents Trump and Biden.