Poll impact on SA markets

Considering the belief that the world catches a cold when the US sneezes, many investors are wondering if markets will catch a cold from the US' election fever.

- Ina Opperman

Experts say elections have a psychological effect on traders and investors.

Kar Yong Ang, an Octa analyst, says while the US election's influence over the markets may be temporary, the excitement and uncertainty surrounding elections can lead to emotional and illogical behaviour, contributing to market swings.

"And since emerging markets like South Africa are often recipients of the ripple effects originating from the US, understanding how the election outcomes could affect the South African economy is essential to successful investment and trading."