Presidential race's winner may not be clear on election night. Here's how investors can prepare.

Dow Jones09-27

MW Presidential race's winner may not be clear on election night. Here's how investors can prepare.

By Victor Reklaitis

Strategist at UBS predicts it will take time to get a result in the White House contest and recommends buying a well-known safe-haven asset

The winner of the tight White House race won't be determined on the night of Nov. 5, a UBS strategist said Thursday, but investors have a way to get positioned for that.

"This is going to be a close election, and so coming with an outcome on election night is not my base case. Something that's more extended would be reasonable to anticipate," said Kurt Reiman, head of fixed income for the Swiss bank's chief investment office for the Americas.

"There could very well be court cases that arise to recount ballots," Reiman said during a media roundtable hosted by UBS.

In the 2020 White House race, it wasn't until four days after Election Day that Democratic nominee Joe Biden was projected as the winner over GOP incumbent Donald Trump by the Associated Press and major networks.

Reiman also offered a take on how investors can position themselves heading into what's likely to be a nail-biter of an election between Trump and 2024 Democratic nominee Kamala Harris.

"A lot of times I look to investments that we like anyway but will perform well in that kind of a scenario. So what's one example of this? Well, in our opinion, gold (GC00) has the advantage of being a safe-haven asset. It's one that investors can deploy in their portfolio to a certain degree to lessen portfolio swings," Reiman said.

"But when you also think about the global central-bank rush to cut interest rates - and central banks diversifying their reserves, which is a bit more of a structural trend - that is already favoring gold GLD, which has already done very well this year," he added.

Related: Why now may be a good time to take 'opportunistic' profits in gold and silver

And see: Gold marks fresh record high as inflation data 'set the stage' for Fed rate cut

-Victor Reklaitis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

September 26, 2024 16:12 ET (20:12 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Presidential race's winner may not be clear on election night. Here's how investors can prepare.

Comments