Trump or Biden: What Say the Banks?

RBC Wealth Management: Blue Wave «Far from Certain»

RBC Wealth Management is placing less emphasis on positioning before the results but instead focusing on the effects after the event.

«Until we know who wins the election, sectors and companies that are fully exposed to policy changes are set to face a lot of volatility and what scares the market most is the unknown,» said Juan Aronna, the bank’s Asia head of investment solutions and products. «A blue wave is currently priced into the market but this outcome is far from certain.»

According to Aronna, a blue wave will benefit tech and health care while a red wave would create tailwinds for energy and financials. And the immediate post-election focus will be placed on the stimulus package and vaccine progress.