Personal Wealth Management / Expert Commentary
Fisher Investments Reviews Market Impact from 2024 Mexico and India Elections
Fisher Investments' founder, Executive Chairman, and Co-Chief Investment Officer, Ken Fisher, shares his thoughts on the impact of major elections in India and Mexico, two of the world’s largest emerging markets.
According to Ken, India’s election results largely continued the status quo in a globally significant economy. On the other hand, Ken says Mexico’s election results—a further shift to the left—fueled short-term worries over potential new regulations, more government spending and the nationalization of private companies. Ken believes both outcomes will have a relatively minor impact on the global stock market relative to the upcoming U.S. election, which he views as the most significant political event for investors in 2024.
Transcript
Ken Fisher:
The two biggest elections outside of America in 2024 are the Mexican election and the election in India. The question that many ask is the impact of them on capital markets, and the answer is not much.
The Indian election did not come off terribly differently than one might have expected. It remains a relatively status quo government. And in that, that really doesn't have much impact. India is a significant major economy and as I've often talked about in other aspects, is really a linchpin in that part of the world relative to the relationship between it and China and Pakistan.
The Mexican election was somewhat of a surprise in, I say, somewhat quite a surprise and a major shift to the left in Mexican politics. This is a negative for Mexico in the short term, for fear of all of the things that happen when governments move heavily to the left for fear that this will impose more regulations, more government taking, more government spending, husbanding assets away from the private sector. And markets don't like that.
But relative to the overall world, that's a small portion of the, of the global stock market, and it isn't much impact. And you can see that by the fact that since those elections, the world stock market just kept going up, as evidenced by whether the MSCI All World or the MSCI World, or in America, the S&P 500.
So, the answer is, really, the big election this year that matters the most is the one that goes on in the land of the free and the home of the brave and its outcome, which so far is playing kind of the way I've talked about it before in prior videos, it is really the important political event of the year and the one from here on, particularly since India and Mexico are completed, to be primarily focused on. Thank you very much for listening.
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