The world is preparing for a protracted US election result, with no victory declaration made tonight (4 November 2020).
Key states of Pennsylvania, Michigan and Wisconsin remain too close to call and results may take days to confirm. Brace yourself for more action, as the probability of a contested election result and protracted legal manoeuvring has risen dramatically.
Democratic nominee Joe Biden’s path to victory narrowed over the course of the day as President Donald Trump outperformed expectations in the key battleground states. The Senate result also appears too close to call, throwing further doubt onto the overall composition of the US Government.
The Democrats hopes of gaining a swing in voters concerned about President Trump’s management of the coronavirus pandemic, the economy and race relations has not fully materialised. Even though voter turnout has broken records, America appears to remain bitterly divided on many issues.
Investment markets were prepared to absorb a clear victory by either of the two candidates but uncertainties associated with a disputed election will most likely bring short term share market volatility.
Importantly, your investments are well positioned to take advantage of buying opportunities that may arise to assist you achieve your long term goals. We remain dedicated to understanding what’s important to you and delivering the best possible financial advice and strategy solutions to ensure your outcomes are maximised, and you can enjoy life.
While President Trump insists he’s won BIG in the election, it is not completely clear that he has enough lead in key states to get across the line again. On the other hand, a Joe Biden blue wave scenario has been ruled out and he is clinging to hope he can become president as all the postal votes (expected to favour the Democrats) are counted.
The current tally of Electoral College vote is 238 for Democrat Joe Biden and 213 for Trump.
Whoever reaches 270 votes will become president.
We will keep you posted, as the composition of the US Government becomes clear and what this is likely to mean for your financial strategies and investments going forward.
In the meantime, turn down the noise of the US election result and stay well and happy.