It’s easy to tune out US politics, but with the US mid-term elections on the 3rd of November, the headlines could start showing up in your investment balances.
Here’s what you need to know, without the noise:
What’s happening: On 3 November, Americans vote for all 435 seats in the House of Representatives and about a third of the Senate. The result decides who controls Congress.
Why it matters in Australia: The US is the world’s largest economy and home to many of the biggest listed companies. What moves US markets often moves ours.
Markets dislike uncertainty: Around elections, share prices, bond markets and currencies can swing more sharply as investors reassess what’s coming.
Trade is one to watch: Talk of tariffs and trade policy can change the earnings outlook for companies that export or operate in several countries.
The Australian dollar may move: A stronger or weaker US dollar can change the value of international investments held by Australians.
Your super likely has US exposure: Many of the world’s biggest technology companies are listed in the US, and most super and managed funds invest overseas. A shake in those shares can flow through to your balance.
A certain result is still an unknown: History shows no simple, consistent link between election outcomes and long-term share market returns. Growth, inflation, interest rates and company profits all matter more.
The takeaway: Elections are one influence among many. Short-term swings grab attention, but long-term results usually come from staying diversified and keeping your eye on your goals.
- Expect plenty of headlines over the coming weeks.
- You don’t need to react to everything.
If something has you wondering whether your super or investments are positioned the way they should be, that’s exactly what we’re here for.
Contact us now for your complimentary VISION call!
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