Macquarie has identified an interesting trend in the Australian stock market where stronger returns are typically generated in the months following an election...

Livewire News

Livewire

Macquarie has identified an interesting trend in the Australian stock market where stronger returns are typically generated in the months following an election which results in a change in government. It seems that stronger returns occur when there is a change in government as the market adjusts its policy expectations. The bank provides a graph which depicts returns to the All Ordinaries index since 1970 around periods of Federal elections. This trend is similar when looking across all elections but less pronounced as a re-election of an incumbent government is less likely to lead to significant changes in policy or direction. The Australian market has also underperformed global markets on average in the month leading up to a change in government, and then outperformed in the 6 months following. This may be associated with higher uncertainty prior to election and a firming of expectation post-election. (VIEW LINK)


2 topics

Livewire News
Livewire News
Livewire

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.