US midterm elections to bring more volatility

election volatility State Street Global Advisors ssga

1 November 2018
| By Oksana Patron |
image
image
expand image

With the US midterm elections on the horizon, volatility is expected to surface in the final stretch of the year, according to State Street Global Advisors (SSGA) senior investment strategist, Raf Chaudhury.

However, in his view, investors should be left relatively unscathed and those who hold course might be potentially rewarded, especially in midterm years.

Commenting on the China trade pressure, Choudhury said little progress was expected towards a resolution over the next several months.

“We believe that Trump has signalled a shift towards China and that the market has recognised the fact that things could get worse before they get better,” he said.

At the same time, European trade negotiations seemed likely to progress although were unlikely to conclude before the midterm elections. Further, Choudhury stressed that there was a political desire among Republicans to get an agreement on NAFTA (North American Free Trade Agreement) before the midterms, which looked to have been enough to get a deal passed. However, the new trade deal would still need Congressional approval.

“With midterm elections just weeks away, our view is that we are entering a bit of a lame duck period in relation to policy,” he added.

“As we go into the final stretch of the year, volatility will continue to surface its head and risks are hovering around. We expect investors to be left relatively unscathed and for investors that hold course, history shows potential for them to be rewarded, especially in midterm years.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 18 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

6 days ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 4 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 22 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

4 days ago