Income Generator: Politics and Bonds 2024
George Bory discusses the intersection of politics and finance, the impact of previous U.S. election results on U.S. and global bonds, and the importance of economic fundamentals in post-election fixed income outcomes.
Key takeaways
- More than 50% of the world’s population has been heading to the polls this year, and so far, the world’s bond markets took most of these elections in stride.
- History suggests it’s unproductive to try pre-positioning a bond portfolio for a U.S. election—but that repositioning it after an election appears to be beneficial.
- Historically, U.S. bonds performed better when control of Congress and the presidency was split between parties. For global bonds, the opposite was true.
- As much as politics matter, economic fundamentals tend to matter more.
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