US Election - Implications for investors

Please click the link below to view Shae Oliver's views on the implications for investors from the result of the US election.

Key points raised are:

  • The US election has been close and final countingas well as legal challenges could still upset the result, but the highly likely outcome is a Biden Presidency.
  • Major US networks and the Associated Press have called the result as it looks highly likely he will secure at least the 270 electoralvotes required to win.
  • While there is a possibility that the Democrats could win control of the Senate via runoff elections in Georgia, the most likely outcome is that Democrats will retain control of the House with Republicans retaining the Senate
  • This is likely to mean Biden's proposed tax hikes won't pass the Senate but that ther will still be some extra fiscal stimulus and that trade wars will be toned down.
  • This combination should be slightly more positive for Australian shares and the Australian dollar relative to US shares andf the US dollar.
  • Historically US shares have performed best under a Democrat President but a divided Congress.