BofA Survey Shows Investors Braced for Contested U.S. Election
- Delayed election outcome seen causing maximum volatility: BofA
- Recession fears fell, investors cut cash and added to stocks
Residents cast ballots an early voting polling location for the 2020 Presidential election in Atlanta, Georgia, on Oct. 12.
Photographer: Elijah Nouvelage/BloombergThis article is for subscribers only.
Fund managers overseeing $593 billion were bracing for extreme market turbulence as they expect the result of the November U.S. election to be contested even as the Democratic nominee Joe Biden holds a comfortable lead over President Donald Trump.
Among investors surveyed in the week through Oct. 8 by Bank of America Corp., 61% believe the U.S. vote’s outcome will be challenged, causing maximum volatility in the final months of the year. The monthly survey took place at a time when, according to RealClearPolitics, Biden held a lead of an average of 9 percentage points nationally over Trump.