The text discusses the market movements ahead of the US election and provides strategies for investors to navigate potential volatility. It emphasizes the importance of being proactive and capitalizing on market dips to enhance long-term portfolios.

Outlook for US Equities

The outlook for US equities remains optimistic regardless of the election outcome, with projected growth supported by benign economic growth, lower interest rates, and advancements in artificial intelligence.

Sector-Specific Insights

In terms of sector-specific insights:

• The technology sector may face short-term challenges under a Trump victory due to concerns over tariffs impacting earnings for hardware and semiconductor companies. However, the long-term growth narrative driven by AI infrastructure spending is expected to prevail.
• The utilities sector's response may vary depending on the election outcome, with a Harris win potentially leading to a relief rally supported by government support for renewable energy initiatives.
• The financial sector's outlook is nuanced, with a Harris victory potentially dampening short-term prospects but a positive medium-term outlook driven by a robust economy and potential deregulation benefits under a Trump administration.

Fixed Income and Currency Strategies

In fixed income and currency strategies:

• Bond yields have risen significantly, presenting an opportunity for investors to lock in attractive rates and enhance portfolio diversification.
• The forecast for the 10-year Treasury yield is set at 3.5% for June 2025, with expectations of elevated yields regardless of the election outcome.
• The US dollar is expected to experience fluctuations based on the election results, with a temporary strengthening under a Trump victory but a bearish medium-term outlook due to overvaluation and deficits.
• Gold is seen as a hedge against uncertainty, with expected price increases regardless of the election outcome.

Overall Advice for Investors

Overall, the text advises investors to remain focused on long-term strategies and capitalize on short-term market movements to navigate the uncertainties ahead and take advantage of emerging opportunities across various asset classes.