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Integrated Insights -- Week of November 16, 2020 -- Election Implications Edition

Integrated Insights -- Week of November 16, 2020 -- Election Implications Edition

November 17, 2020

After a contentious US presidential election, the next four years has now crystalized with President-elect Joe Biden set to take the helm in the executive branch in January.  This past week, some of our sub-advisor partners shared thoughts on what this may mean for the economy--particularly in light of a possible divided government and with the continued backdrop of Covid-19.

U.S. election: Biden win -- BlackRock

  • A Democratic victory without Senate control would reinforce market trends such as the hunt for yield and growth stocks

  • A Biden divided government could crimp fiscal stimulus, and cap rises in bond yields and inflation expectations

  • Biden will likely bring a focus on sustainability, reregulation and a more predictable trade policy that supports emerging market assets

U.S. election results bring policy priorities into focus -- Capital Group

“What’s Next for Markets?” Post-Election Edition -- Hartford Funds

This post is an expert panel weighing in on promising vaccine news, the election, and the outlook for value versus growth going forward. The full transcript is a worthy read, but below I have pulled several impactful thoughts:

  • The reality is, we’re living in parallel universes. There’s the real economy, where people have lost jobs or seen diminished incomes. ... The other universe is the markets. 
    --Nanette Abuhoff Jacobson, Managing Director and Multi- Asset Strategist at Wellington Management Company
  • We are still in an economic downturn. It is unlikely we’ll get back to the level of economic growth we were at until the end of 2021. ... Companies that are taking advantage of technological change to make their operations more efficient and cost-effective are poised to gain.
    --Jon Mackay, Head of Sales, Wealth Management Solutions at Schroders Investment Management