Following the U.S. presidential debate between Donald Trump and Kamala Harris, experts advise investors to focus more on market volatility than the political landscape.
Tuesday’s presidential debate covered topics similar to those in the first debate. Instead of presenting new policies, both candidates reinforced their existing positions, often referencing each other’s views to maintain an aggressive stance.
Lee Sang Yeon, a researcher at Shin Young Securities, observed that the financial markets favored Harris as the winner of the debate, as evidenced by the flow of trading around her. He added that it is important to focus more on market volatility than political events.
In the wake of the debate, major Asian stock markets saw a rebound in eco-friendly sectors like secondary batteries and solar energy, even though overall market indices were weak. Bitcoin also extended its decline, reflecting the influence of trading trends favoring Harris after the debate.
This pattern continued in the U.S. stock market, with sectors tied to Harris, such as solar, wind, and secondary batteries, rose, while those linked to Trump, like Bitcoin and defense, saw declines.
Lee pointed out that the uncertainty surrounding the U.S. presidential election remains unresolved. Although Harris performed well in the debate, he highlighted that their chances of winning and approval ratings haven’t shifted much, especially since both candidates largely stuck to their previous narratives. As a result, sectors benefitting from specific candidates may continue to fluctuate.
Lee advised that market volatility is a bigger concern than political variables. Sectors related to low volatility, like essential consumer goods, utilities, and real estate, which may benefit from interest rate cuts, could become meaningful investment opportunities until the end of the year.
Most Commented