Invest Data Consulting Ltd

In every economy of note around the globe, it has long being established that the political mood of the country has effect on its financial markets as investors and at such times, particularly foreign portfolio managers stay as close to cash as possible, in a pre-election year depending on their own perception of where the votes may swing in the Presidential ballot. The reading of the a nation’s electoral cycle and how investors perceive whether there could be a change in leadership, is a major factor that results in much of the uncertainty pre-election years have been known for. This, it is believed can, and does spike market volatility and businesses, especially when it is seen that a new party may take power. In such cases, portfolio investors begin to reduce their risk and exposures, at least until they are able to gauge precisely where the new government would tilt, which can take some time in the early stage of that administration. In the United States, with a lo...