Category: Election
Market Challenges and the Coming Election
Key Points Challenges include elevated virus transmissions, high unemployment levels, the Presidential election and stretched valuation metrics Monetary and fiscal policy combined with vaccine developments are likely to continue to support risk assets 2020: A Historic Year 2020 will be remembered as the year the coronavirus severely tested the basic freedoms and tenets of capitalism in the United States. The virus has proven to be highly efficient in disrupting many of the daily routines we typically take for granted. Like an engine needs clean oil to operate smoothly, the free movement of people, goods, and capital are key lubricants capitalism needs to operate smoothly. The virus is near-perfect friction to this free movement. As we have witnessed, businesses and education systems have difficulty functioning without free movement. Unfortunately, we have also felt the human tragedy the virus has created with nearly 775,000 deaths globally,5 a number that will sadly go higher. For investors, the result has been some of the largest and fastest swings in financial markets and economic conditions in history. Yet given all this bad news and volatility, the resiliency of our people and the capitalistic economy is truly amazing. In short order, doctors and scientists have developed 8 coronavirus vaccines that are in late-stage trials,1 and many new treatments for COVID-19 are being uncovered rapidly. Central banks and governments globally have also delivered unprecedented reli
2016 Election: A Breakdown of the Candidates
In an election year that appears to be anything but conventional, voters may have slightly better clarity on Donald Trump and Hillary Clinton and where they stand on key issues following the conclusion of the two major political party conventions. Differences in economic policies of Clinton and Trump mostly follow along party lines and viewpoints about the role of government. Clinton proposes a measured agenda. It is one that offers change, but without revamping the existing system and without throwing aside longstanding practices such as staying within budget constraints. Trump is focused on three main economic policy issues: 1) raise barriers to immigration; 2) impose large tariffs on goods from Mexico and China; and 3) enact large tax cuts. The presidential candidates’ policy platform on key issues is detailed on the following pages and is reflective of information released as of September 12, 2016. However, details are expected to continue to emerge or change as the official debate season begins and as Hillary Clinton and Donald Trump enter the final weeks of the U.S. presidential campaign. Looking forward, the Commission on Presidential Debates has announced the following dates for the upcoming three presidential debates and one vice presidential debate where the candidates will meet head-to-head and discuss their positions on key economic and political issues. Ø First presidential debate: September 26, 2016 at Hofstra University, Hemp
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