Nine months ahead of the presidential election, investors are already thinking about how financial markets might respond to the outcome of the vote, and how they should trade to prepare for it.
Stock markets have soared to record highs in recent weeks, while government bond yields, which underpin interest rates for consumers and companies, are down from a recent peak in October.
Despite the uncertainty of making political predictions, money managers are already contemplating how the election could alter the mood in markets.
Red wave, blue wave or divided government?
Those policies, which cut the government’s revenue and raised its borrowing needs, also propelled a sharp rise in government bond yields.
Persons:
Donald J, Trump
Organizations:
Stock, Republican, Republicans
Locations:
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