The two candidates in the American Presidential election are ideologically as far apart as any I can remember since Ronald Reagan and Jimmy Carter in 1980. In fact, it is hard to imagine the US political system throwing up a greater divide, unless the Republicans were to choose a Tea Party candidate. This gap is producing exceptionally strong personal sentiments from voters on both sides of the fence as the election approaches.
Yet the financial markets seem to be completely unfazed by the decision which the American electorate will make on Tuesday. Asset prices are acting as if they do not care very much who wins. Does this attitude make sense, and will it survive the election? Read more