Market Impact from Election Day
As all investors know, election results have an impact on markets, whether by maintaining the status quo, providing a mandate for massive change, or something between the two extremes. The precise impact can often be difficult to determine. For instance, a policy platform that imposes onerous regulations on fossil fuel industries may be detrimental to oil and gas companies because of additional costs incurred and restrictions imposed, or those same policies may benefit some of these companies by driving up the price of oil and gas. In the case of Proposition 22, approved this week by voters in California, Uber and Lyft are exempted from a legal requirement to classify their drivers as employees. As is the case with any policy change, wise investors will evaluate the scope of impact in the full context of the current political and business landscape to determine how this policy development changes the probabilistic value of these companies.
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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management
