BlockBeats news, on November 4th, due to the concentration of significant events this week, the U.S. election coupled with the Federal Reserve's interest rate meeting, most traders believe that there will be volatility this week, and it could be severe, as the election is likely to result in a controversial outcome that could drag the counting process on for weeks or even months.
Meanwhile, hedge funds are betting on larger price swings. Data compiled earlier this month by the Commodity Futures Trading Commission (CFTC) shows that large speculators have turned net long on VIX futures for the first time since January 2019.
Several senior Wall Street traders suggest that cash is king. Among them, Robert Schein, Chief Investment Officer of Blanke Schein Wealth Management, stated that he has increased his cash equivalents holding from the usual 5% to 10%. His strategy is to be ready to snap up assets at any time when the results inevitably trigger volatility in at least part of the market.
Eric Diton, President and Managing Director of Wealth Alliance, said in an interview: "We are not positioning for the election outcome because that’s like flipping a coin. It makes no sense to place a bet." (Jin Shi)