There are clear differences between President Donald Trump and Former Vice President Joe Biden (and the political parties they represent) when it comes to tax policies, spending priorities, and overall economic strategies. For this reason, a shift in the balance of power could have wide-ranging implications for future policies and the financial prospects of individuals and businesses.
With the nation closely divided, it is difficult to forecast election outcomes based on opinion polls. It's no secret that financial markets prefer clarity and have reacted to election surprises in the past. But with an economy weakened by the pandemic, concerns about election security, and the possibility of delayed or contested results, investors are facing extra layers of uncertainty.1
As a taxpayer, you might find it helpful to follow the candidates' policy proposals. And as an investor, you may want to steel yourself for an anticipated increase in market volatility in the weeks before and after the election.
For further information see attachment below