US election round-up: fund managers peek over the cliff

Less than twelve hours after President Barack Obama was given a second chance at leading the world's largest economy, attention has already shifted to the fiscal stalemate.

As close votes showed a polarised electorate, Citywire Global caught up with leading investors on their verdict of the election outcome.

Alliance Bernstein's director of fixed income, Scott DiMaggio said, as Wall Street opened on Wednesday:

'After billions of dollars and months of debate, the political landscape in the US looks today as it did yesterday.'

'Bond markets are rallying and equity features slightly lower in part due to the realization of the continuing gridlock in Washington.'

'We have one question answered and now all eyes will turn to what they need to do over the next six weeks.'

Speaking at Citywire's event in Berlin on Wednesday, co-founder of MRB Partners, Peter Perkins, said:

'We know the American electorate is highly divided with great ideological differences. The public has also shown over the course of the election that it favours pragmatism over ideological issues, as the economy was more central than any other issue.'

'There is a good chance of the coalition coming together and there is a basis for a degree of optimism but I would have said that even if Mr Romney had won, his move to the centre showed that the middle road is the road the American public wants to see taken.'

Threadneedle's Cormac Weldon, manager of the firm's American Select  fund, said:

'Despite the rhetoric, Obama knows that his scope for manoeuvre on the face of the 'fiscal cliff' and the budget is limited. He has little choice but to address these challenges by raising taxes and cutting spending.'

'While markets may be volatile post-election, we believe that in the longer term, US equities will gain support from the fundamental strengths of the economy.'

BNY Mellon's David Leduc earlier told Citywire Global he is set to take profits in a post-election bond rally.