Democrat Joe Biden is pressing ahead with preparations to take the reins as the next President of the United States. Despite legal challenges and recounts, the early signs are that markets are responding positively.
In fact, the US sharemarket hit record highs in the weeks following the November 3 election as Biden’s lead widened.
So what can we expect from a Biden Presidency?
Lump Sum (one off) Withdrawals
If you are planning any large acquisitions in July that will require drawing down on your investments, superannuation or pension accounts, please be aware that most investment managers delay redemptions in the first weeks of the new financial year as they finalise their end of year accounts.To avoid any issues, we recommend you redeem any cash that will be needed in July, by no later than 15th June 2020 – or if possible, defer any large purchases to late July.PLEASE NOTE: All your regular payments (pensions etc.) will go through as normal. This temporary hold only relates to one off withdrawals.
Last week I talked about investment returns not necessarily to blow our own trumpet, but more to give reassurance that diversification works and that building in some downside protection can reduce the very big swings, single asset classes can have.
May, 15, 2020