As the U.S. presidential election approaches, financial markets are bracing for potential turbulence. Historically, stocks often experience increased volatility in the months leading up to an election as investors weigh potential policy changes. However, markets typically stabilise post-election, particularly if the incumbent party remains in power.
The U.S. dollar’s performance can vary, heavily influenced by how markets perceive the candidates' economic policies. A candidate with fiscally conservative views might strengthen the dollar, while uncertainty can weaken it.
Gold, known as a safe-haven asset, usually sees a surge in demand during election periods—driven by investor caution. Despite short-term spikes, gold's long-term trends are less impacted by who's in the White House.
Navigating Market Reactions During U.S. Elections
While elections can shake up the markets, the long-term effects are often more moderate than they appear. Dive deeper into the trends and insights in our full analysis on Space.
