Co-produced with Trapping Value
As the U.S. presidential elections draw near, it's impossible to not consider the ramifications of the different policies that might come into play during the next four years. Investors try and discount these ahead of time so as to prevent any surprises. These discounting mechanisms are, however, not always rational. In that regard, investor mood swings can range from unbounded optimism to hopeless paranoia. We identify one of the candidates today, where the sentiment is far removed from the underlying fundamentals, as a result of which, it represents a good risk