The Best Investment Manager's Guide to the 2024 U.S. Elections: How to Safeguard Your Portfolio Amid Economic Slowdown and Geopolitical Tensions
As the U.S. gears up for the 2024 elections, BCA Research warns investors to be cautious and take steps to de-risk their portfolios. With economic uncertainties, geopolitical tensions, and the possibility of market volatility looming, it's crucial to be prepared.
BCA Research gives a slight edge to the Democrats, but the margin is slim, and market disruptions could still occur. The looming threat of a recession is a major concern, as rising unemployment rates could trigger a market selloff.
To navigate these uncertain times, BCA advises favoring US assets over global ones, U.S. bonds over stocks, and defensive equity sectors over cyclicals. Industries that offer essential services or are supported by government spending are expected to perform better during economic contractions.
Geopolitical instability, particularly tensions with Russia and China, adds another layer of uncertainty. Any escalation in these areas could further destabilize global markets. Additionally, potential "October surprises" just before the election could bring about unexpected disruptions that impact voter sentiment and the market.
With neither party having a clear advantage in the election, the risk of unexpected disruptions remains high. Therefore, de-risking your portfolio is a smart strategy to protect your investments during these uncertain times.