Global Election Analysis and Market Implications

The upcoming U.S. presidential election between Joe Biden and Donald Trump is not just about political ideologies, but also about the economic implications for the country and the world. Both candidates are facing the challenge of dealing with historically large fiscal deficits, which are contributing to persistent inflation. The Federal Reserve may need to keep rates high for longer to combat this issue.

Trade, immigration, and energy policies are also key areas to watch, as they could have significant impacts on inflation no matter who wins the election. Trump’s protectionist stance on trade and Biden’s focus on domestic production could shape the future economic landscape.

Meanwhile, elections around the globe are also shaping the economic outlook. From India to Mexico to the European Union, political changes could have far-reaching consequences for global supply chains and economic stability.

As investors navigate these uncertain times, staying overweight on U.S. stocks and keeping an eye on key policy areas of the presidential election is crucial. Looking ahead, government bonds in the euro area and UK may offer opportunities for lower interest rates in the long term.