The hotly-contested US election has left the nation divided but created a ‘goldilocks’ situation for smart investors, according to OC Funds Management senior investment analyst Robert Calnon.

While Democrat nominee, Joe Biden was able to eke out incumbent President Donald Trump for the nation’s top job, his party looks unlikely to secure a majority in the senate. This will make it difficult for Mr Biden to pass the more progressive policies his party touted in the run up to the election – like tax hikes and large public spending campaigns – Mr Calnon said.

That’s significant because it means business will not have to contend with radical policy changes, and means the US Federal Reserve will likely provide liquidity to markets to keep the economy ticking over.

Mr Calnon described it as a “nirvana” outcome for global markets.

If you would like to attend the ‘Meet the Fund Manager’ session on Friday, 27th November and have an opportunity to ask Robert questions live, you can book here.

Vaccine news gives markets further hope

In the weeks that have followed the 3 November election, three pharmaceutical firms (Pfizer, Moderna, and AstraZeneca) have all published the results of early COVID-19 vaccine trials. All three were shown to be at least 70-90 percent effective. 

This is further good news for investors, Mr Calnon said, as it will likely encourage more risk taking in equity markets and improve their medium-term prospects.

Cars and data storming ahead

Although these two factors will likely support markets, Mr Calnon said he prefers businesses with exposure to the automotive industry or data creation and usage.

As people return to the roads and become more mobile, businesses which help them to do so will likely benefit, according to him.

Meanwhile data is an “immense, untapped valuable asset” which will power the world’s increasingly digital economy.

Robert Calnon will be presenting at Reach Markets’ next ‘Meet the Fund Manager’ webinar on Friday, 27 November at 12pm AEDT to discuss the state of global markets and which small and microcap companies he thinks will perform well in the months ahead.

If you would like to attend the ‘Meet the Fund Manager’ session and have an opportunity to ask Robert questions live, you can book here.

Sources:

• ABC News, The US election shows a divided country, but it’s foolish to count out America
• Politico, Democrats and Republicans are currently deadlocked for control of the Senate
• The New Daily, Three COVID-19 vaccines look promising. How do they compare?