Donald Trump or Joe Biden? The question of who will be the next US President is also significant for Karsten-Dirk Steffens. «Normally, business with institutional investors calms down at the end of October. But I strongly expect this to be different this year due to the US elections,» says the head of Abrdn Investments Switzerland in an interview with finews.ch.

Trump or Biden – this will also influence the investment business. At Abrdn Investments Switzerland, preparations are being made to go the extra mile in the fall.

Trump's Manner is Off-Putting

Steffens expects that especially Trump's election could alarm numerous investors: «Trump's return to the White House would be like a big bang. His polarizing manner is not well received.» The consequence: Some institutional investors might be tempted to make adjustments to their investments in November and December.

The market has already experienced a turbulent time. 2023 was marked by uncertainty. This year, the markets have recovered. This is mainly because two success factors have crystallized in asset allocation: a higher proportion of foreign stocks leads to a better track record. In addition, pension funds with high proportions of illiquid investments perform better. These include real estate, alternative investments, or infrastructure investments.

Shift From Real Estate to Infrastructure

This applies not only to pension funds but also to investment and collective foundations. «Since the interest rate reversal, a clear shift from real estate to infrastructure has been noticeable. Many are afraid of overvaluation,» says Steffens. Additionally, risks are being spread even more broadly.

The US elections in early November could now cause new excitement in the market. This is not necessarily what market participants wish for. Although his hands are somewhat tied, Steffens responds with composure: «We will be ready,» says the Switzerland head of Abrdn.