12 October 2012 08:00

How will the US presidential elections move the markets?

Many investors are looking to find the 'next big thing' when talking abouit emerging markets, and Turkey is one nation that is attracting a lot of attention. However, the attraction of markets will depend a lot of what's decided by the US government. That's the issue discussed by the Modern Wealth Management Blog.

Crucially, the next president of the US will be able to appoint three members to the Federal Reserve (Fed) Board of Governors and it is believed Romney would lean towards selecting inflation hawks to fill these important posts.

Obama's selection is more likely to favour lower rates and the current Fed - which is headed by Ben Bernanke, who was kept on as chairman when the president came into power - has indicated it will keep short-term rates close to zero until the end of 2014.

So, at a first glance, both contenders have polarised views on how best to run the world's largest economy, therefore it is little wonder there is so much conflicting opinion regarding the impact the presidential election will have on the markets.

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