IMCB - The Relationship Between Elections And Volatility

2024-05-09 06:00:00 ET

Summary

• Inflation, interest rates and geopolitical uncertainty tend to influence the market more than U.S. election results.
• Traders tend to conflate their political bias, or a certain election result, as being better for the stock market over the next four years.
• Traders can take a position on volatility in the equity space by buying volatility or buying options a few months in advance of the election.

By Scott Bauer

At a Glance

• Inflation, interest rates and geopolitical uncertainty tend to influence the market more than U.S. election results
• Traders can use equity options ahead of the election to take a view on volatility

For further details see: