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

High-volatility and small-cap firms possible winners

Lauren Mason
clock • 7 min read

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 of some more cyclical companies, despite the fact many have underperformed their quality growth counterparts for several years. Head of strategy, research and commercials at Style Analytics Handzy's research shows that, in the seven months following US elections during the last nine presidential races, value, small-cap and high-volatility stocks have outperformed their historic seven-mont...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Budget wish lists: Advisers share hopes and fears ahead of 26 November

Budget wish lists: Advisers share hopes and fears ahead of 26 November

Is increasing income tax the chancellor’s ‘least worst’ option?

Jenna Brown
clock 17 November 2025 • 9 min read
Bank of England holds interest rates at 4% as Budget looms large

Bank of England holds interest rates at 4% as Budget looms large

Five MPC members voted to hold rates

Michael Nelson
clock 06 November 2025 • 3 min read
Partner Insight: Tariffs are here to stay. What's next for investors?

Partner Insight: Tariffs are here to stay. What's next for investors?

The current outlook for US tariffs is complex and their full impact on growth remains to be seen. Columbia Threadneedle Investments explores what advisers need to know, key events to keep top of mind and how to navigate the uncertainty.

Columbia Threadneedle Investments
clock 23 October 2025 • 5 min read