Biden vs Trump: Stocks that could benefit in the most likely US election outcome scenarios

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Biden vs Trump: Stocks that could benefit in the most likely US election outcome scenarios

The investment bank advises against making substantial changes to strategic portfolio allocations solely based on the elections but recommend considering near-term election risk management."We expect equity market volatility to rise—it typically does—as Election Day approaches owing to policy uncertainty," the analysts note.

These stocks serve as a guide for expressing tactical election views and hedging election-related risks. Additionally, traditional energy and financial sectors might gain from a more relaxed regulatory environment."Less stringent antitrust enforcement could spur a pickup in M&A activity," the analysts explain.

The bank says a Biden win with a split Congress would rely on executive actions and regulatory oversight for climate change initiatives. Recent US Supreme Court decisions limiting federal agencies' regulatory authority could constrain Biden's implementation scope without Congressional support.

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Biden vs Trump: Stocks that could benefit in the most likely US election outcome scenariosBiden vs Trump: Stocks that could benefit in the most likely US election outcome scenarios
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