“Eight Election Trades For November 8th”

Jon Alternative Media, Blogosphere, Civil Unrest, Economy, Fiscal Policies, Geopolitics, Gold, Market Commentary, Politics, Precious Metals

No matter the outcome of the presidential election, according to BofA’s Chief Investment Strategist, Michael Hartnett, 2017 will likely be a year of small absolute returns as the bank expects higher rates will collide with high bond and equity valuations, but it will be a year of big rotations “as investors shift from ZIRP winners like bonds, US, growth stocks to ZIRP losers like commodities, banks and Japan”, where BofA forecasts 20,000 on Nikkei, although for that to happen the currency would have to implode in what may be a terminal loss of faith in the central bank.
Still, with all attention now focused on the key risk event until a potential December rate hike, namely the November 8 presidential election, BofA provides 8 specific election trades for the election.
In a note titled “Eight election trades for Nov 8th”, Hartnett shares a variety of trade ideas, some “election-specific and some result-dependent: long VIX futures; long AUDUSD vol; long TIPS; long global E-commerce, short fast restaurants (inequality); long US materials and largecap banks (fiscal); long US small caps, short emerging markets (Trump protectionist); long gold, short EU banks (Trump geopolitics); long Mexican peso (Clinton victory).”

This post was published at Zero Hedge on Sep 24, 2016.