"How significant is the impact of the U.S. election 'deadlock' on the financial markets?"
The election results have yet to be revealed, the market is in panic, the VIX fear index is soaring, and the volatility of both the stock and bond markets is intensifying. The upcoming U.S. presidential election may not only be a duel between Harris and Trump but could also become a stage for the financial markets.
U.S. presidential election years typically favor the stock market; since 1960, the S&P 500 index has almost always risen in election years. However, this year is different, and the uncertainty of the election may break this trend. If the results take too long to come out, the market may face turbulence or even a crash, as seen in the 2000 Florida recount incident when the S&P 500 index fell by 4%, and Treasury yields and gold prices experienced severe fluctuations.
Harris and Trump have vastly different policy directions, presenting a significant challenge for investors. If Harris wins, sectors like clean energy, electric vehicles, and cannabis stocks may benefit. On the other hand, if Trump wins, oil and gas companies and traditional energy stocks will have an advantage. Furthermore, Trump's shift in attitude may position the U.S. as the "cryptocurrency capital," boosting related sectors.
Regardless of who wins, the uncertainty from this election will undoubtedly heighten market volatility. Whether you're focused on stocks, bonds, or cryptocurrencies, this is an important juncture that cannot be ignored. Investing carries risks; proceed with caution, manage your risks well, and prepare to embrace the opportunities and challenges that this political drama brings to the market.
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The above content is for informational sharing only and does not constitute any investment advice! Investing carries risks; proceed with caution!
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