04 Nov 2020
Early indications are that the US election is too close to call. Trump has again outperformed most forecasts, but with many states still counting ballots – and the likelihood of legal challenges to come from either campaign – Biden is still very much in the race although the final result may not be known for some time.
There will be a result, eventually, albeit in the meantime uncertainty may be bad for sentiment until the dust settles. While share prices might be impacted, “the sun still rises in the morning and sets in the evening even though” as one European politician commented in 2016, “the world is a crazier place”. Our immediate concern from a UK sterling investors’ standpoint is the reaction of the currency markets made more complicated by the long, drawn-out Brexit saga reaching its end point one way or another on 31st December, if not before. Investors must weigh this up to determine whether taking out protection on US dollar exposure is necessary to protect the value of sterling investors’ assets.
Please note: Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. The views expressed are those of the individuals mentioned at the time of writing, are not necessarily those of Jupiter as a whole, and may be subject to change. This is particularly true during periods of rapidly changing market circumstances.
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