What the DNC might signal for US equities

In our view, US equities would do a bit better over the next few years if Donald Trump wins re-election than under Joe Biden. However, the tone of this week’s Democratic National Convention (DNC) reinforces the idea that the particular policies favoured by the left of the party which would probably present the biggest threat to the stock market are not all that likely to materialise if Biden wins. So, on balance, we still suspect that US equities will rise a bit further over the next few years, regardless of the election result.