What’s happening now?
If there’s one thing Donald Trump knows how to deliver, it’s drama. And he certainly didn’t disappoint with his unprecedented statement this morning, amid an election result still very much in the process of being decided, that he has “already won” and that his opponents are guilty of perpetrating a “fraud on the American public”. This was of course a statement right out of the President’s typical playbook. Yet there is no evidence of fraud and in fact it is not yet clear that either Donald Trump or challenger Joe Biden has won the election. Unfortunately we may have to wait days for all of the votes to be counted in a number of key battleground states which will prove vital to the final outcome – including in Wisconsin, Michigan and Pennsylvania, all of which served to sink Hillary Clinton’s chances four years ago. Donald Trump has even raised the prospect that the election may have to be decided in the Supreme Court, invoking the unhappy spectre of the deeply controversial outcome in the 2000 contest between Al Gore and George W Bush.
How has the election affected markets?
Happily, the markets do not appear to be disturbed by what has unfolded overnight. European indices appear calm and at the time of writing, futures contracts for the S&P 500 suggest that the US market could even open slightly higher later today. However, investors should be prepared for the possibility of some turbulence should the uncertainty prove protracted. Whatever happens in the end, one thing is clear: the polls and the pundits have been found wanting yet again. Much commentary in the run-up to the election suggested a relatively easy path to victory for Joe Biden. That certainly has not been the case and there is no doubt that, yet again, Donald Trump has outperformed expectations. But whether that will be enough to get him over the line this time remains to be seen.
Should we do anything differently?
We will of course continue to monitor the situation closely and will be in touch to comment on further developments as and when we consider it necessary.
Please note, these are the views of Asset Intelligence Research. For advice on your personal circumstances, please speak to your Financial Adviser in the first instance and they will recommend the right solution for you.
