According to the survey the elections have the potential to have a significant impact on the US equities and rates markets. Investors see a more promising growth outlook under a Romney win, despite their concerns about a tighter monetary policy stance. They favour long equities and short bonds as the best way to exploit a Romney win.
Under an Obama win, investors favour bonds and are divided about the direction of equities but are more likely to favour the former over the latter. An Obama victory would be likely to be perceived as preserving the status quo, while a Romney win is more likely to suggest a change of direction and a better growth outlook.
The biggest perceived risk of an Obama centred on tax/regulatory concerns, while the biggest worry under a Romney victory would be a tighter Fed policy.
The following 11 graphs highlight the key findings of the survey.