Vice President Kamala Harris spoke at the Democratic National Convention last night after accepting the party’s presidential nomination for the 2024 election. With less than 75 days to go until the election, Tom McLoughlin, co-head of ElectionWatch at UBS Global Wealth Management, joins Catalysts to discuss the election’s potential impact on markets (^DJI, ^IXIC, ^GSPC).
McLoughlin says that while a Harris victory is the most likely outcome at this point, “this election will be extraordinarily close.” He also stresses the importance of the congressional elections, noting that they are “equally important” because they will significantly affect domestic politics.
“There is a lot of evidence that suggests that presidential elections have a tactical impact on the market in the short term, that is, over a period of two or three months,” McLoughlin explains. However, he notes that these effects tend to balance out in the long term.
McLoughlin advises investors not to “get too caught up in the election results.” He points out that while there may be short-term volatility (^VIX), long-term investment strategies should not get too caught up in the election results.
Click here to watch the full episode of Catalysts for more expert insights and information on current market events.
This article was written by Angel Smith
