We do not expect the result of the US elections to have a lasting impact on the stock market. Neither the tax hikes on investment income proposed by President Obama nor the tax cuts proposed by his defeated Republican challenger are likely to see the light of day, as Congress remains split. But a compromise between the Democrats and Republicans to avert next year’s fiscal "cliff" may not be reached until the eleventh hour, which could affect sentiment in the meantime.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services