Whether Barack Obama or John McCain win the US presidency next week, investors are likely to see some changes in the markets.
People investing in US equities are being reminded that the US presidential election, whatever the outcome, is likely to alter the investment landscape in the country significantly. According to Threadneedle, certain sectors would benefit more from a Democratic win than a Republican one and vice versa.
The investment company cites utilities, IT, healthcare, industrials and consumer goods as some of the areas likely to be affected by the political events in the US and the sometimes opposing policies of the two presidential candidates.
For example, a win for John McCain may benefit the utilities sector as the Republicans are known for being more pro-energy than the Democrats. However, biotech firms could profit from a Barack Obama victory since his party are in favour of fast-tracking the approval process for some medicines.
"These are a few of the major industries whose fortunes stand to be impacted by the differing policies and philosophies of the two major American political parties," said Threadneedle's head of US equities, Cormac Weldon. "The outcome of the election will serve to illustrate that the effect of a change of power in government can have widespread influences in the market."
The US presidential election is due to take place on Tuesday November 4th, although George W Bush will not leave office until January next year when the new president is inaugurated.
