Market Overview

Poll: Global Investors Very Concerned About A Contested US Election

Poll: Global Investors Very Concerned About A Contested US Election

The SPDR S&P 500 ETF Trust (NYSE: SPY) started off the week on a strong note ahead of the first U.S. presidential debate on Tuesday night. According to a new poll conducted by deVere Group, investors around the world are very concerned about fallout from the November elections.

What To Know: In the poll, deVere asked 735 clients located in the UK, North America, Asia, Africa, Latin America and Australia what their single biggest investment worry is in the fourth quarter. Of those surveyed, 71% said a contested U.S. election is their biggest concern. The second biggest worry is a second wave of the COVID-19 pandemic, which was a distant second at just 18%. Another 5% of those surveyed said they're most concerned about the trade war between the US and China.

A Worst-Case Scenario: Nigel Green, founder and CEO of deVere Group, said investors aren’t necessarily concerned about the results of the election. They are most concerned about fallout from a messy process.

“President Trump is already questioning the legitimacy of the election, heightening the chances of a contested result and an ensuing constitutional crisis in the world’s largest economy. It’s getting ugly and investors are, rightly, concerned that this will generate massive waves of volatility in the markets, not only in the U.S., but around the world,” Green said.

Ultimately, Green said U.S. election-related market volatility will be temporary, and long-term investors should be looking to take advantage of the opportunity by buying any significant market dips.

Benzinga’s Take: According to PredictIt, Joe Biden now has a 59% chance of defeating Trump in November, and Biden has been consistently leading Trump in the polls. However, Democratic contender Hillary Clinton was also leading Trump in most polls heading into the 2016 election, so investors will certainly be watching to see if the race tightens in the five weeks between now and Election Day.

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