Not alarm bells, just a wake-up call on the US election
Outsider must admit to currently having more than a passing interest in the outcome of the US Presidential election but he is clearly not as invested as a number of the online delegates to the Association of Financial Advisers virtual annual conference.
How else does one explain the conference chat box carrying comments reflecting a delegate’s hope that Democrat candidate, Joe Biden would lose while picking up on President Donald Trump’s disparaging descriptor of Biden as “Sleepy Joe”.
He feels sure that President Trump’s campaign chiefs will be delighted that their messaging is gaining cut through… in Australia.
Now Outsider agrees that the outcome of the US election will have an impact on markets and Australian financial advisers are wise to be paying attention, but he is pretty sure that it won’t significantly change the landscape in the Land of Oz.
What is more, the major fund managers have already factored in both outcomes.
Indeed, Outsider’s quick check of what the fund managers were thinking suggests that most are factoring in a Biden victory, including Magellan’s Hamish Douglass, who says he is factoring a higher taxation environment in the US and therefore lowered his exposure to US companies.
In the meantime, Outsider suggests that advisers forget Sleepy Joe and wake up to the reality that they need to position their clients to ride Australia’s economic recovery which may have already started.
AUTHOR
The Outsider
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