As is always the case, the economy is a big topic of conversation in the run-up to elections. Why would it be any different in the United States? We covered this a few weeks ago, but thought we should spend some time on the often-talked-about-but-unfortunately-never-truly-understood issue… tariffs.

Oil dominates every aspect of our lives. It fuels our cars. It is used in the production of plastic goods. It provides electricity for our homes and factories. It’s even found in the fertiliser for the soil that grows our food.

Before investing in any sector, we need to understand how that sector relates to the overall economy. Like all good stories, we want to start at the beginning.

General elections can and do affect equity markets as the uncertainty around their outcome typically increases market volatility before votes are cast. Markets adjust further after an election takes place as the policy priorities of the newly installed government become available. A clear margin of victory and a returning incumbent tend to reduce uncertainty and minimise market volatility.

Interest rates have been cut by central banks across the globe and more cuts are expected going forward. But what does this mean?