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Head of Equities Stephen Dover and Franklin Equity Group’s Grant Bowers discuss potential US equity market impacts from the US elections.
Stephen H. Dover, CFA Head of Equities
Grant BowersPortfolio Manager, Research Analyst
Ahead of November’s US elections, our Head of Equities Stephen Dover and Franklin Equity Group’s Grant Bowers break down potential US equity market impacts. They also give their take on a potential “blue wave,” and share four areas of bipartisan support with nuanced differences, they believe US voters and investors are likely to focus on.
Market phases and elections are somewhat predictable cycles—headwinds, tailwinds, and uncertainty in the outcome are parts of both processes. While elections occur like clockwork (in the United States), both cycles can affect each other in unpredictable ways. I recently had a wide-ranging discussion with Franklin Equity Group Portfolio Manager Grant Bowers that covered potential market impacts from the election, the prospects for infrastructure spending, and how long-term investors might navigate volatility:
As an investor, the most important cycle to watch for is your own life and its cycles, and we believe in understanding your investment horizon and thinking longer term. Elections and market cycles come and go; however, they may offer opportunities to purchase stocks at discounted prices relative to their intrinsic worth. For more, watch my “Quick Talks: Sectors and the US Elections” with Grant Bowers here:
Source: The Washington Post. “Was it a blue wave or not? That depends on how you define a wave,” November 13, 2018.
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. The technology industry can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants as well as general economic conditions. Investments in fast-growing industries, including the technology and health care sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments. Investments in infrastructure-related securities involve special risks, such as high interest costs, high leverage and increased susceptibility to adverse economic or regulatory developments affecting the sector.
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.
The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. All investments involve risks, including possible loss of principal.
Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments opinions and analyses in the material is at the sole discretion of the user.
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