What impact does the presidential election have on the bond market? A financial expert provides insights.

What impact does the presidential election have on the bond market? A financial expert provides insights.

According to a report by www.diepresse.com, the presidential election can have far-reaching effects on the bond market. In particular, the question of debt policy is the focus. It is being discussed that only a possible election result would lead to a real change of course.

The tax reform that Donald Trump signed in 2017 had already provoked a strong reaction from Democrats. Joe Biden ran for president in 2020 promising to reverse tax reform. Although Democrats won the majority in both chambers of Congress in 2020, Biden was unable to implement his plans because Democratic senators blocked his plans.

It is noted that much of Trump's reforms expire by 2025 unless politicians decide to extend them. This economic policy question will have a significant impact on the election campaign, regardless of the candidates who ultimately run.

As a financial professional, it is important to analyze the potential impact of such an outcome on the bond market. If Biden's tax reform is implemented, it could lead to changes in tax rates and other economic policy decisions that impact investors. It is therefore important for investors to closely monitor the outcome of the elections and potential political changes in order to be able to react accordingly to any developments.