60 seconds on what the US election means for equities

The race for the White House has become closely contested, but what are the main policies that investors should focus on?

17 October 2016

Matt Ward

Matt Ward

Portfolio Manager, US Equities

The key observation is how close the election has become in the last two or three weeks.

Hilary Clinton started with a substantial advantage, which has  deteriorated significantly.

I think people fear a potential Republican congress under Donald Trump and having that ability to transform, but one has to consider the nature of congress.

Paul Ryan - current Speaker of the U.S. House of Representatives and a member of the Republican party - and congress are a pretty rambunctious group that has defied leadership before.

Congress could block Trump's proposals, certainly with the nature of Trump and what he wants to do with the deficit. Remember this is a congress that shut down government for the deficit.

From the perspective of Hilary Clinton, the healthcare issue comes to the fore because of her ambitions towards drug pricing, and I think that would certainly be negative for biotech and pharma.

Important Information: The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.  To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.