By Nick O’Connor – Southbank Private Briefing (Great Britain)
The US election is less than two weeks away and recent signs from the markets are warning there could be trouble ahead.
After this issue, there’s only one more week in which I will have the opportunity to cut risk in the portfolios ahead of what might be a significant change event.
I’m selling the country funds – Mexico and Taiwan. If more is required, I’ll be back next week. The winner of the US election aside, I’m mindful that the last two presidents (Clinton I and Bush II), left their successors with bear markets in 2000 and 2008. Those made me want to investigate further.
The arrows show you the elections since 1960 and the S&P 500 in real terms (after inflation). I’m sorry the artwork is a little basic. I could have spent hours differentiating between single and two-term presidents or Republicans and Democrats.
In reality, it is just the election itself that should put us all on red alert.