The American presidential election is now the biggest worry among institutional
Nearly three quarters of respondents said they’re worried about the November election, a greater percentage than those fretting about a second wave of the coronavirus or layoffs, or even a slower-than-expected economic recovery, RBC strategists led by
While those questions didn’t specify the exact source of angst, Goldman Sachs Group Inc. analysts recently flagged the potential for earnings-depressing
“Our survey picked up an important shift in how U.S. equity investors are thinking about a Biden victory,” Calvasina said. “Biden bears surged in our June poll, rising for the second survey in a row. 60% now see Biden as a bearish or very bearish outcome for the stock market, up from 24% in our December 2019 poll.”
Some 65% in the survey saw Trump’s re-election as bullish or very bullish for stocks.
However, policy experts at the Scowcroft Group have said investor concerns about a potential
Read more:
NatWest Markets Plc global strategy desk chief
“This looks like a big risk for U.S. asset markets and the dollar as we head into summer,” he said.
The RBC survey was conducted June 15-22 and based on the input from 107 institutional investors, primarily U.S.-focused portfolio managers.
Some 56% of respondents said stock valuations were high or very high. As for the dollar, 47% expect it to weaken over the next six to 12 months, versus 17% who see it strengthening.
--With assistance from
To contact the reporter on this story:
To contact the editors responsible for this story:
Ravil Shirodkar
© 2020 Bloomberg L.P. All rights reserved. Used with permission.
To read more articles log in. To learn more about a subscription click here.