Experts are preparing for a choppy market ahead of the 2020 election. Here are the 6 themes UBS says investors should be watching.
- The 2020 U.S. presidential election is top of mind for investors wondering how it might impact their portfolios, according to UBS's Year Ahead 2020 report.
- Generally, national elections don't substantially affect investors. But, the U.S. election is an exception to that rule, said Mike Ryan, UBS chief investment strategist for Wealth Management Americas.
- Here are six key themes that investors should watch in the lead-up to the election in 2020, according to UBS.
- Read more on Business Insider.
Heading into 2020, the U.S. presidential election is top of mind for investors asking how it might impact their portfolios.While national elections generally don't substantially affect global investors, the U.S. election "is an exception to that rule," said Mike Ryan, UBS chief investment strategist for Wealth Management Americas, at a press event Tuesday. Advertisement
That's because the U.S. makes up roughly 55% of the MSCI All Country World index, the U.S. Treasury bond yield is a benchmark for global financial assets, and the U.S. dollar is involved in 88% of all currency transactions, according to UBS.
U.S. stocks could face higher volatility leading up to the election, UBS said. And some individual sectors, including technology, energy, financials, and healthcare, could suffer from price swings.That means that investors both in the U.S. and abroad should pay attention in the run-up to the election and monitor the debates for a number of key issues, the bank said.
Here are six key themes that UBS says investors should be watching in the next year leading up to the 2020 election.
1. Corporate taxes
2. Trade policyAdvertisement
3. Technology regulation
4. Environmental legislationAdvertisement
6. Healthcare reformAdvertisement
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