6 Reasons Why Investors Are Paying Close Attention To The US Elections

6 Reasons Why Investors Are Paying Close Attention To The US Elections

Only a few weeks remain before the United States elects a new president who’ll turn a new chapter in its economy and history. To be honest, the US election is not exclusive to its 50 states; the business world, if not whole planet watches carefully. Investors across the globe continue to keep an eye.

Here are some reasons why the US elections matter to the business sector.

Taxes

Investors are most likely to support the candidate who supports a tax reform. Entrepreneurs would love to place their money where taxes are lower than invest in locations where the majority of their earnings go to mulct.

Optimism and Confidence

Investors are also likely to take risks in the market where they feel their money is safer and will profit. But even the consumers tend to be a little hesitant to make purchases lately. Retail sales are lower this year than expected.

Unemployment

Are we looking at lower sales just because of the market’s response to uncertainty? Or is this also because of the unemployment that the US government hasn’t entirely taken care of since the recession? While there was a positive change in unemployment rates in the Unites States, most people still argue that the number of created jobs monthly are not enough to support the households.

Economic Growth

People’s response to the presidential elections also affects the market significantly. There’s a reported slowdown in economic growth, characterized by sales hitting below expectations. Investors are taking their time to predict, too.

Policies

Ever-changing laws and policies affect businesses both in their products and workforce. Right at this moment, anyone can imagine these stakeholders looking which state favors either of the two republican and democratic candidates. Policies on immigrants, for instance, could affect their human resources and employee trust.

Low Prices

If there’s one thing that we can be happy about is the low prices. Months before the US presidential elections, fuel prices are lower. While the Federal Reserve have increased its rates, interests are still below expectations.

Here are six reasons why the presidential election is intriguing. May the better candidate win!