Trump Or Clinton Better For Your Investments?

US Elections Special

On November 8th 2016, the people of the United States will select their next President. While focus is on the vote, experienced traders will look to the markets, as the election will create high volatility. Candidates, Democratic Hillary Clinton, and Republican Donald Trump, have differing opinions on policy, which stand to affect the markets no matter who takes office.

US Election Effect
The markets are fully focussed on the upcoming election with the polls affecting many currencies, for example the Mexican peso reached six-week highs based on the strength that Clinton was leading. However with the FBI’s investigation into Clinton’s emails, her campaign has suffered pushing Trumps popularity higher and Mexican peso has dropped in value.

Trump Moves Up As Volatility Returns
With less than a week to go before the election, there's been a shift in sentiment and in the latest polls Trump has taken a slight lead, which has been the catalyst for some fairly significant risk-off moves.

The VIX that measures the fears and volatility of the US equity market has jumped to 19 due to this shift. It had been around the 13 level on the expectation that Clinton would win the race for the White House. Also a sell-off on the S&P 500, which has broken important support levels and is trading at its lowest level since July. Either the markets are concerned about a Trump win, or investors are lowering risk to protect against a shock result or higher volatility.

Who’s Better For Your Investments?
It's considered that a Trump would be better for families who are trying to pass assets to the next generation tax-free, as Trump would end the estate (‘death’) tax. Hillary would be worse for these families, as she would increase estate taxes by double.

Trump would also seem to be better for manufacturing workers, however his planned tariffs on imports could put American manufacturing workers at risk or out of work, as US exports would potentially be reduced in volume. Clinton on the other hand is seen by Wall Street as “more of the same”, the ‘status quo’ candidate would largely continue with Obama’s policies.

Vote for Volatility, Trade the US Election
Keep in mind that volatility is expected across USD pairs during the election, and after results are released sharp market movements are expected that offer significant trading opportunities.

Best regards,

Alexandra Miller
Yadix Support Team
Yadix Forex Broker
Telephone: +44(0) 20 3239 6117
E-mail: support@yadix.com
Skype: yadix.forex