The asset manager for a changing world
Hollywood boulevard US 1600x900
  • Home
  • US elections 2020: Biden and the uncertain Senate

US elections 2020: Biden and the uncertain Senate

Outlooks & Research Papers

BNP Paribas Asset Management
 

With Joe Biden set to become the 46th US president, investors are wondering what next, especially since it remains unclear whether the Democrats will have (a form of) control of the Senate and hence whether they will be able to enact much of their policy agenda.

For now, US equity markets have welcomed the election result, but renewed volatility looks likely as runoff elections approach in early January for two Senate seats. These two runoffs appear likely to decide the balance of power in Congress and the size of any stimulus package for an economy under renewed pressure as the COVID-19 caseload rises.

  • What can investors expect in the early days of the new administration in terms of executive orders and appointments? How will Biden go about tackling his number one priority, the pandemic? How quickly will he change tack on climate policy?
  • How will he deal with both a conservative-dominated Supreme Court and conflicting views in his own party on the court’s appointment system, the use of regulation (of tech companies), and tackling income and racial inequality?
  • What can we expect on foreign and trade policy after the tumultuous Trump years?

In our latest research paper, ‘US elections 2020: Biden and the uncertain state‘, our team review these topics as well as the market implications of a potentially divided Congress for policy implementation and a major fiscal stimulus.


 

Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

On the same subject:

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management.

UCITS OFFER NO GUARANTEED RETURNS AND PAST PERFORMANCES DO NOT GUARANTEE FUTURE ONES