Market Volatility and US Elections

The upcoming US elections are anticipated to create significant market volatility, with a focus on achieving clarity in the results. Historically, the outcomes of close elections have had a substantial impact on U.S. equities, leading investors to seek a clear decision to foster stability in the markets. The potential for litigation over election results could lead to a 'risk-off' environment if clarity is lacking, while a decisive result typically boosts investor confidence. Speculation surrounds the effects of either candidate, with forecasts suggesting that a Trump victory could strengthen the dollar and equities, whereas a Kamala Harris win might lead to a softer dollar and more moderate growth in U.S. stock markets.