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The market is expected to "hedge" after Trump's surge

Investors are expected to invest in "safe" assets and trade linked to Donald Trump's increased chances of winning the presidential election, according to analysts who have spoken to the news agency Bloomberg.

Published: 14 July 2024
The market is expected to "hedge" after Trump's surge
Photo: Peter Morgan/AP/TT

Investors are expected to invest in "safe" assets and trade linked to Donald Trump's increased chances of winning the presidential election, according to analysts who have spoken to the news agency Bloomberg.

This weekend's events are likely to increase volatility on Monday, both on the bond and stock markets. We expect movements towards safe assets such as the Swiss franc and gold, says Ipek Ozkardeskaya, an analyst at Swissquote Bank.

Other assets in line with Trump's economic policy are shares in companies within the energy sector, the credit industry, and health insurance. Trump also has a preference for protectionism and tariffs, which can affect the Chinese currency yuan and the Mexican peso.

In the fixed income market, the long-term bond yields are expected to be particularly affected by Trump's increased chances of becoming president.

However, there is no precedent for how a presidential attempt affects the markets. When former President Ronald Reagan was shot in 1981, the stock markets initially fell, only to rise again the following day, while the long-term bond yields declined, according to data compiled by Bloomberg.

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By TTThis article has been altered and translated by Sweden Herald

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