What buyers ought to look for as the U.S. election processes

International investors don’t appear all that involved approximately the imminent U.S. Presidential election, in large element due to the fact polls nevertheless placed Democrat Hillary Clinton as probable to win the White house.

when you consider that her tax proposals are toward the popularity quo than party rival Bernie Sanders and Republican candidate Donald Trump, its understandable that financial markets stay calm.

although a Clinton administration might also represent the status quo, Steven Wieting, global chief funding strategist at Citi non-public financial institution, mentioned that markets will also cognizance on her Congressional guide.

If a huge win by using Clinton results in both homes of Congress switching from Republican to Democrat, he believes it can impact industries which include health care, power and finance in a meaningful manner.

“depending at the polling leading put to November, sector rotation can also occur if a GOP popularity quo in Congress is keep,” Wieting wrote in Citi’s mid-year outlook for 2016.

If Trump wins the election, the strategist warned that both the U.S. dollar and Treasury yields should revel in high ranges of volatility. He believes this will reflect the capacity for Trump’s protectionist policies and unfunded deficit spending to be enacted.

“this may offset any effective outcomes from his schedule of deregulation and lower taxes, which might otherwise gain equities,” Wieting said.