Applying the brakes? Growth stocks expected to slow after US election regardless of result

High-volatility and small-cap firms possible winners

Lauren Mason
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Trump v Biden - who will win the race to the White House? Photos: iStockphoto/Pool/ABACA/USA TODAY Network/SIPA USA/PA Images
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Trump v Biden - who will win the race to the White House? Photos: iStockphoto/Pool/ABACA/USA TODAY Network/SIPA USA/PA Images

Investors need to watch out for a slowdown in growth and momentum plays – such as the FAANG stocks – after the US Presidential Election, according to Style Analytics' Damian Handzy, whose research shows that value, high-volatility and small-cap companies are likely to outperform during the months after the result is announced.

This view is shared by several other investment professionals on a longer-term basis, who believe post-election inflationary tailwinds will create "a new generation of winners" and boost the performance...

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