With nearly 80 days left until the U.S. presidential election, we can expect the markets to pick up pace once the “mojito and beaches” season is over.
The WHO has declared a global emergency due to the monkeypox virus, and it's no coincidence that this move comes right before the U.S. elections.
This has three main objectives:
1. Influence public opinion – Ineffective management of the situation can weaken support for incumbent candidates, while successful handling could boost their popularity.
2. Disrupt the electoral process – Complicate voting logistics, lower voter turnout, and potentially lead to disputes over the election results.
3. Instill fear – Leverage emotions to advance certain political agendas, stressing the need for strong leadership or sowing division among the electorate.
In short, this is just noise meant to stir the markets, so there’s no need to pay too much attention.
That said, you can never be certain how this will impact the market (always keep risk management in mind). But at the same time, focus on the charts to filter out the noise.
Take advantage of the summer period to gain more knowledge and experience through trading, and be ready for the final quarter of the year.
It’s going to be both crucial and fascinating.