This week is already the first of three televised clashes between candidates to occupy the White House in January. The current tenant, Trump, and the challenger, Joe Biden, former Obama vice-president, will open the hostilities of what promises to be a long and tumultuous confrontation, given whoever is the winner at the polls, there will almost certainly be a contestation of the result in the weeks following. If Trump wins, the traditional sectors of oil producers and those linked to defence may have additional buying pressure, given that they are expected to benefit from a continuation of the current presidency.
Photo by Markus Winkler.
If Biden is chosen, the market anticipates a cooling of commercial tensions with China, which could help companies linked to global trade, as well as the renewable energy sector, that is, it is not at all indifferent to investors who will lead the largest economy in the world over the next four years. For example, the health sector is another potential target for the more radical wing of the Democratic party that wants lower costs, as do the big tech companies, which face the possibility of lobbying for their break up, at least the biggest ones. Transversal will be the almost inevitable inevitability of a substantial increase in volatility, in fact, investors expect this and until the end of the year, this shows the allocation of capital in derivatives of the VIX volatility index.
Marco Silva is a Financial Market Specialist with 20 years of experience, with transactions in 12 different countries, involving numerous financial instruments, Specialist in Technical Analysis, Capital Manager, Investment Advisor, Financial Hedging Operations and Algorithm trading developer. Economic Commentator TV and RTP Information for the Financial Markets, Responsible for the Department of Economy / Markets of TVL.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.