With the first Trump-Biden debate of 2020 in the books, we’ve headed into the final stretch of the 2020 election. Let’s note the election risk and then look at how to protect against it.
Election Risk
A couple of weeks ago, a Finnish business journalist asked me which candidate would be worse for the market. I told her that the risk in the near term wasn’t either candidate winning, but neither candidate winning: that the best thing for near term returns was a decisive election night victory. In a Wednesday article (“As Election Looms, Investors See Uncertainty. They Don’t Like It.”), investment professionals interviewed by the New York Times made similar points. For example:
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