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U.K. Investors Are Negative on U.S. Investing; Regardless of election results, 42% of U.K. investors think U.S. stock economy outlook is negative.

Article Excerpt
CONSHOHOCKEN, Pa., Oct. 28 /PRNewswire/ -- Regardless of the eventual winner of the U.S. presidential election, 42% of U.K. private individual investors have a negative economic outlook on the United States for the next 12 months, according to a poll by Gartmore and Citywire.(1)

Yet, despite this negativity, historical figures from Gartmore show that overall U.S. market typically responds positively after a presidential election. A look back at previous elections shows that overall U.S. market performance, as measured by ACTIVE Trader magazine, bounced upward in 16 of 27 elections, producing an average return of 9.8% from 1926 to 2004.(2)

More recently, the U.S. market has experienced a positive kick start after five of the past six elections, with average returns up by 7.2% over a 4 month period, dating back to the start of the late President Reagan's first term in 1980.(2)

Gil Knight, senior investment manager of the U.K.-distributed Gartmore U.S. Opportunities Fund, comments, "While the figures currently don't make great reading, investors can look to a few economic barometers for hope. Historically, regardless of the eventual outcome of an election, the U.S. economy generally responds very favorably, as a period of stability will ensue after...