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
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.
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