Investors are preparing for the market ahead of the U.S. presidential election, which will kick off next week’s Democratic National Convention. The United States will hold a National Congress next week to formally nominate former Vice President Joe Biden to run for president. President trump, who is fighting for re-election, also said earlier that he would travel to four key states to hold campaign activities next week. Although this year’s election has a great impact on investors, so far the impact of the election on the market is not as good as the new crown epidemic and the unprecedented stimulus measures of US policy makers. < / P > < p > investors are keeping a close eye on a range of results, including the competition between trump and presidential candidate Biden, which may produce an outcome that cannot be determined immediately or may be controversial. As a result, some are increasing their cash positions, while others are betting on market volatility. “The impact of the election will last a long time, and the market has already cracked,” said Lamar villere, portfolio manager at villere & Co < / P > < p > Ville’s companies have raised their cash levels to as much as 20% of their assets to hedge against market volatility caused by elections. Some analysts pointed out that the stock market is overvalued, and the standard & Poor’s 500 index has rebounded more than 50% from its low, and the current expected P / E ratio is the highest in 20 years. Data from TD securities dating back to 1930 show that when the S & P 500 index rose three months before the election, incumbent presidents tend to win the presidential election. < / P > < p > that could be bad news for trump. Although the index rose about 3% in August, data from BofA global research showed that August kicked off the weakest three months in stock market history. At the same time, no current president has been re elected during the recession, TD securities wrote. Biden is eight percentage points ahead of trump in opinion polls after he chose U.S. Senator Kamala Harris as his running mate, according to Reuters / Ipsos data released on Wednesday. Analysts pointed out that Biden’s victory or sweeping both houses of Congress would threaten the policies that Wall Street generally supports, including lower corporate tax rates and less regulation, which trump actively advocates. In a recent report, analysts at Oxford Economics said: “if Biden were to be elected president in the future, the impact could have unsettled the market in the first place.” According to J.P. Morgan, the plan to raise corporate income tax to 28% could reduce earnings of Companies in the S & P 500 index by 5.5%, capital expenditure by about $50 billion and share buybacks by $100 billion, according to J.P. Morgan. At the same time, Stuart Katz, chief investment officer of Robertson Stephens wealth management, a US wealth management firm, said Biden might reject Trump’s trade policy and help international and emerging market stocks outperform US stocks in the coming year. One of Biden’s flagship policies, an increase of $2 trillion in infrastructure spending, could further depress the already weak dollar, according to the Oxford Institute of economics. Stephen Innes, chief global market strategist at axicorp, said Trump’s re-election could ease concerns about higher tax rates, but would trigger renewed concerns about international geopolitical tensions. According to iness, Trump’s second term could also benefit oil and gas companies, thanks to further easing of Obama era regulations. In a recent report, Joseph Amato, chief investment officer of Neuberger Berman, wrote that investors should also be prepared that the president may doubt the authenticity of the vote or simply withdraw from the election. In a tweet in late July, trump exacerbated concerns about the disputed election, suggesting that the election should be postponed until people can “vote correctly and safely.”.