Tonight’s third and last presidential debate could have real meat for investors to chew on. Unlike debate #1 (an introductory presentation and contrast of the candidates in their own words) and debate #2 (a “friendly” town hall sparring bout), debate #3 could provide real information (policies and plans) that helps us identify investment opportunities and risks.
Disclosure: Author is invested in U.S. stocks and U.S. stock funds
The final presidential debates are the candidates’ last chance to make their cases to millions of voters: how they would govern, the goals they would pursue and the methods they would use for accomplishing their aims. From those explanations, we can gain a view of what that might mean to the U.S. economy and financial system over the next four years.
Examples of points to look for
Here are examples of key areas that could help us identify investment opportunities and risks.
Note: Clearly, it is not enough to say, “I’m going to do this!” The challenges of working with legislators’ diverse attitudes and beliefs in order to achieve congressional support means a candidate also must explain how a goal can be achieved.
Infrastructure
Seemingly, everyone agrees there is a need not only to make repairs, but also to create improvements. Moreover, infrastructure is one of those areas where the federal government must take the lead, meaning the candidates can help us understand what they believe should be done and how those objectives could be accomplished.
International trade
Trade is big business and an important component of the U.S. economy. However, cross border dealings are made challenging by cultural, legal, governmental and economic differences. These differences can create “unfair” practices, so federally negotiated trade pacts are a necessary part of fostering international trade. Therefore, the candidates need to explain what steps will be taken to ensure fairness and to encourage trade.
Business incentives
As explained in, “Tired of Slow Growth? Clinton or Trump Can Help More Than the Fed,” government initiatives can provide for more direct effect than the Fed’s generalized low interest rate approach. This topic is especially important because of the widespread view and concern that the post-Great Recession growth, while positive, has been too slow. The candidates should explain their view of economic growth, the federal government’s role in supporting it and what steps they would like to take.
College education
College education now has business attributes and company participation, supported by financial (lending) activities. The problems discussed in this election cycle mean we should expect new initiatives. The “government should make college free to all” solution is a nice goal, but the resulting changes will likely involve expanding on business solutions. The candidates should provide their views and how a workable solution could be reached.
The bottom line
Tonight’s debate could furnish some helpful information for investors; perhaps even in helping shape a 2017 investment strategy. Hopefully, the noise of the past few weeks will be replaced by discussions of each candidate’s forward-looking views and strategies, giving us investors information to assess the opportunities and risks that might be coming.
