Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Investors Worry More About Election Than Covid Wave: Survey

Published 06/24/2020, 05:02 AM
Updated 06/24/2020, 05:27 AM
U.S. Investors Worry More About Election Than Covid Wave: Survey

U.S. Investors Worry More About Election Than Covid Wave: Survey

(Bloomberg) -- The American presidential election is now the biggest worry among institutional equity investors, topping everything from a second wave of Covid-19 infections to renewed U.S.-China trade tensions, according to a survey by RBC Capital Markets.

Nearly three quarters of respondents said they’re worried about the November election, a greater percentage than those fretting about a second wave of the coronavirus or layoffs, or even a slower-than-expected economic recovery, RBC strategists led by Lori Calvasina wrote in a report June 24. The question, “what keeps you up at night?” saw the 2020 election as the most common answer.

While those questions didn’t specify the exact source of angst, Goldman Sachs Group Inc (NYSE:GS). analysts recently flagged the potential for earnings-depressing tax hikes should Democrats do well in November. The RBC survey showed rising concerns about President Donald Trump going down to challenger Joe Biden.

“Our survey picked up an important shift in how U.S. equity investors are thinking about a Biden victory,” Calvasina said. “Biden bears surged in our June poll, rising for the second survey in a row. 60% now see Biden as a bearish or very bearish outcome for the stock market, up from 24% in our December 2019 poll.”

Some 65% in the survey saw Trump’s re-election as bullish or very bullish for stocks.

However, policy experts at the Scowcroft Group have said investor concerns about a potential Biden presidency are misplaced, and suggested that a second Trump term might not be entirely bullish for the market. Previous predictions of stock-market gloom from presidential elections often haven’t panned out well for strategists anyway.

Read more: Obama Will Kill Stock Market. No, Trump Will. No, Warren Will

NatWest Markets Plc global strategy desk chief James McCormick (NYSE:MKC) said in a note June 22 that concern among investors about a new wave of viral infections might soon shift to what the “worrying Covid-19 trends” might mean for the presidential election.

“This looks like a big risk for U.S. asset markets and the dollar as we head into summer,” he said.

The RBC survey was conducted June 15-22 and based on the input from 107 institutional investors, primarily U.S.-focused portfolio managers.

Some 56% of respondents said stock valuations were high or very high. As for the dollar, 47% expect it to weaken over the next six to 12 months, versus 17% who see it strengthening.

©2020 Bloomberg L.P.

 

Latest comments

If the Beijing Biden got elected, market will crash and have 30% cut. Dems will increase corporate tax and ****up economy again.
wrong!!! Just overlap Democrat presidents administration over the stock market and you will see that that stock market does much much better under a Democrat! When a Republican is president it almost always either goes down or trades sideways. Go see for yourself the facts don't lie only trump and his administration does. Your just towing the Republican party line in order to stay in power. Political tribalism at its finest. That's the problem with trump supporters they put party before the country. Traitors all of you!
American economy and stock markets grew consistently under Clinton and Obama, while crashed and burn under George W and Trump.
Your ignorant for not looking at the truth. Go check the stock charts and compare them to Democrat and Republican administrations. The facts don't lie. Clearly Democrats are better for the market but of course you will never admit that because it doesn't fit your narrative. There are none so Blind as those who refuse to see!
the things you learn on CNN. lol
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.