Election Year Capital Markets 2020

Mike Restivo Investment Advice: The progress of the coronavirus is slowed almost contained as it were, but still vulnerable to better updates from China.

The medical precautions taken globally are containing infections by containment/isolation.

There is no treatment for the virus, nor for the virus pneumonia, its secondary symptoms.

About 45% of those 65+ die, so these gloomy statistics hang over capital market sentiment in the background as it were, as confidence increases that through successful isolation, the coronavirus will be stopped at the borders of other countries as it were.

A vaccine will be produced in about a year.

Therefore, investors turn to the coming U.S. election for some economic monetary and capital market insight of what may serve as buying opportunities.

With varying volatility, based upon the notion "Opening trade on the rumour, closing trade on the news." - Restivo investor and business sectors are more aligned with GOP promises than the "tax the rich" views of the Democrats.

As incumbents are usually re-elected, POTUS has a very well financed campaign started in 2016, just after his inauguration, compared to the slapstick machinations of the Democratic party and funding poor candidates, it is very likely President Donald J. Trump will be re-elected.

Furthermore, the first quarter of an election year, is usually very good for the markets, as the Executive enacts policies in fulfillment of some election promises.