What might the election mean for markets?

The election is less than three months away, the campaign is heating up and political experts are speculating on what the makeup of our next government will be. For the economy, uncertainty always prevails as an election approaches. Businesses tend to sit on their hands, refraining from making any major decisions while the policy backdrop is up in the air. However, once they’re out of the way most firms simply get on with things, rather than letting the political landscape derail their plans. We need to monitor potential risks or changes, but we should also remember that good quality assets and great businesses can perform well regardless of who’s in office. It’s not always wise to make wholesale changes to our investment strategy on the basis of politics.