Key points covered
- Elections in the UK, Europe, France and the United States can create short-term market uncertainty.
- Fund managers assess how changes in government policy, taxation and regulation may affect investments.
- A change of US administration could alter income tax, tariffs and manufacturing policy.
- Smaller US companies may benefit from changes that encourage domestic production.
- Larger companies with manufacturing based in countries such as China may face pressure to move more production back to the United States.
- Investment teams regularly review political, economic and geopolitical risks when managing client portfolios.
- War, high taxation and money creation can disrupt markets and contribute to inflation.
- Investing should be viewed over at least five years, rather than judged by short-term political events.
- Markets may fall and recover, so investment decisions should not be driven by immediate election results alone.