Ballots and bulls - Do elections impact financial markets?

Every three years New Zealand engages in the dance of the politicians, known as our General Election. Elections are often regarded as significant events, with the potential to shape the direction of a nation’s policies and priorities. Given the attention and suspense they generate, the actual impact of elections on local financial markets is worth examining. A closer analysis reveals that while elections and changes in government introduce a level of uncertainty, their influence on financial market returns and economic performance is generally more limited than most surmise.