Investors overestimate the threat associated with the upcoming US presidential election. USA, that is, the option that it may simply be a contested choice that lasts for months, according to a Note wednesday from JPMorgan.
The procedure of adding investors to the threat after the peak of the COVID-19 pandemic has slowed in recent weeks, with U. S. elections being the “threat of the key occasion” for the rest of the year.
While the election raises uncertainty for investors about who will win the task and which long-term policy projects will be implemented remains unk aware, the likelihood of a contested election for months is low, JPMorgan said.
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1. “Great electoral uncertainty is highly unlikely. “
JPMorgan notes that, while a mailing ballot build-up may leave official effects not without known delay, the procedure for collecting, validating and counting votes must end within two to three weeks of voting day.
<< Some of the effects can be challenged in state courts and even referred to the Supreme Court, however, the procedure will likely move temporarily if the disputes are largely procedural All this gives each state enough time to send its default number of the electoral college electorate voting for the winner of the state elections on December 14," JPMorgan said.
2. “The conclusion of the elections can come at a positive price anyway”.
No matter who wins the next election, stock prices can experience a rise for several reasons, JPMorgan said.
To begin with, a conclusion of choice would eliminate the market threat that gains value advantages. Moreover, a fiscal stimulus package under any of the winners would temporarily materialize, and Trump and Biden’s precedence would be to temporarily reopen the economy. safely, assuming that a possible winter peak in COVID-19 instances is manageable, according to JPMorgan.
3. “The friction between the United States and China is unlikely to worsen if Trump is re-elected. “
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