Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

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

Stock MarketsJun 24, 2020 05:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
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.

 

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

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
David Wang
David Wang Jun 24, 2020 10:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If the Beijing Biden got elected, market will crash and have 30% cut. Dems will increase corporate tax and ****up economy again.
Zen Warrior
Zen Warrior Jun 24, 2020 6:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
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!
William Smith
William Smith Jun 24, 2020 6:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Markets get destroyed under leftist rule.
Zen Warrior
Zen Warrior Jun 24, 2020 6:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
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!
Tre Hsi
Tre Hsi Jun 24, 2020 6:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
American economy and stock markets grew consistently under Clinton and Obama, while crashed and burn under George W and Trump.
William Smith
William Smith Jun 24, 2020 6:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Saying the US market "crashed under Trump" has to win the most ignorant comment of the day award.
Zen Warrior
Zen Warrior Jun 24, 2020 6:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
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!
James Folk
James Folk Jun 24, 2020 6:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the things you learn on CNN. lol
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email