Investment Review - Political Leadership In The Spotlight

Uncertainty about the global economy should begin to lift in November with the US presidential election and confirmation of China's new political leadership marking an important new phase for financial markets.

World

Political uncertainty, combined with mixed corporate earnings and poor company earnings guidance, has meant that markets have generally been choppy and range-bound for a while, awaiting a new sense of direction. In the US, some of the uncertainty is now likely to have lifted as Barack Obama and his administration prepare for another four years in office. The hope is that the landscape will be clear enough for companies to begin investing the cash on their balance sheets and provide the US economy with another potential avenue for growth.