Market Signals for the Election

October 26, 2020

Election 2020 is one week away, and markets are reacting. LPL Government Relations’ Nana Nyanin provides an insider’s insights on the election, balance of power in the Senate, and the proposed stimulus bill. Also, what GDP numbers may tell us.

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Election 2020 is right around the corner, earnings season is in full swing, and the economy is improving, but new COVID-19 cases have jumped higher. We discuss the current market environment and host a very special guest to discuss the landscape in Washington, DC.

Confusing times

The economy is improving even though we’re faced with a record number of new COVID-19 cases. With the election only a week away, many investors are on edge. The CBOE Volatility Index (VIX) is still above 30, indicating potential worry and volatility, while the credit markets are surprisingly calm. It is a confusing backdrop for sure.

Talking politics

Nana Nyanin is an AVP on LPL’s Government Relations team and works as one of LPL’s lobbyists and policy analysts on Capitol Hill. She joined the podcast this week to discuss the election, Senate balance of power, the 2016 election versus this year’s, the Supreme Court, filibusters, and more.

A close race

Although the polls have presidential candidate Joe Biden in the lead, this race could be much closer than many of the experts think. Stronger stocks, a weak US dollar, improving gross domestic product (GDP), and higher incomes all historically have supported the incumbent president. We discuss why this election may be closer and the potential impacts.

Chart - Gross Domestic Product (GDP) Matters to Voters

Tune in now

Listen to the entire podcast to get the LPL strategists’ views and insights on current market trends in the US and global economies. To listen to previous podcasts go to Market Signals podcast. You can subscribe to Market Signals on iTunes, Google Play, or Spotify.

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IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index data is from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC.

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