Gold, stocks, and dollar: Octa’s guide to navigating market volatility during election time
- Written by Media Outreach
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 2 September 2024- The influence of presidential elections on financial markets is often temporary. Still, the psychological effect of elections on traders and investors can cause emotional and illogical behaviour, contributing to increased market swings. Apart from the White House, the Senate is also up for grabs this fall, and the balance of power inside the legislative branch could be just as important. To mitigate potential losses, investors should refrain from purchasing risky assets during periods of election-related uncertainty. The sheer fact that presidential elections are taking place in a deeply divided yet highly important country is already having a bullish impact on gold prices. 
When it comes to quick money-making on the financial markets, retail traders often disregard political events. Instead, they prefer to focus on regular macroeconomic releases, such as scheduled Consumer Price Index (CPI) readings or Nonfarm Payrolls (NFP) reports. However, politics and economics often go together. And if there is one political event that traders cannot afford to overlook this year, it is certainly the U.S. presidential elections, which are set to be held on Tuesday, November 5, 2024. This pivotal event doesn't just influence American citizens—it has a significant ripple effect on global financial markets. From Wall Street to the commodities markets, the implications of the U.S. presidential election could be profound and far-reaching. The candidates American voters will choose between Kamala Harris, the Democratic nominee, and former President Donald Trump, the Republican nominee. Kamala Harris aligns closely with the current president, Joe Biden, especially on domestic policies. She is backing national abortion protections, LGBT+ rights, and significant fiscal stimulus measures, such as student debt relief. She is also a staunch advocate of new legislation to address climate change and wants to move the U.S. economy toward cleaner energy sources. As a presidential candidate, she introduced a staggering $10 trillion climate plan, greatly surpassing Biden’s $1.6 trillion initiatives. In addition, Harris also advocated for a ‘climate pollution fee’ and proposed the elimination of federal subsidies for fossil fuels. Although Harris launched her political career in Silicon Valley, she is now calling for regulations to address the dangers of artificial intelligence (AI) and enhance data privacy rules. Her record on trade policies suggests that she is somewhat sceptical of free trade. ‘There would be no trade deal that would be signed unless it protected American workers and it protected our environment,’ she was quoted as saying at one point. Donald Trump’s previous administration was characterised by tax cuts, deregulation, and a focus on trade policies. During the 2024 campaign, Trump has repeated his intention to cut red tape, reduce government spending, and bring inflation down. He intends to lift the restrictions on fossil fuel production and cancel the electric vehicle mandate. Additionally, Trump seems to be leaning towards protectionism as he has explicitly promised to ‘stop outsourcing and turn the United States into a manufacturing superpower’. Domestically, one of his most radical proposals is to deport millions of illegal immigrants and seal the border. As for the tech sphere, the Republicans aim to put an end to what they describe as Democrats' overreach in regulating cryptocurrencies. They vow to defend the rights of Americans to mine Bitcoin (BTC) and manage their digital assets independently. Additionally, they promise freedom from government surveillance and control of digital transactions. They also plan to overturn President Biden's executive order on AI, which they believe hinders innovation. Implications for the markets Before discussing the potential implications of the U.S. presidential elections on the financial market, there is one important caveat to make—U.S. presidents are not omnipotent. The U.S. is a sprawling nation with numerous institutions, a developed political framework, and a complex system of checks and balances. No president can single-handedly steer the entire country in one direction. For instance, if Kamala Harris becomes president but the Senate remains Republican-controlled, she would face significant hurdles in pushing through her initiatives. Likewise, with a Democrat-controlled Senate, President Trump might find his policies completely stalled. Therefore, while the executive branch of government is undeniably significant, its power has limits and should not be overstated. In this regard, it is worth remembering that in addition to the high-stakes presidential race, this fall's ballot also includes one-third of the U.S. Senate seats (presently held by a slim Democratic majority) and all 435 seats in the House of Representatives (where...
When it comes to quick money-making on the financial markets, retail traders often disregard political events. Instead, they prefer to focus on regular macroeconomic releases, such as scheduled Consumer Price Index (CPI) readings or Nonfarm Payrolls (NFP) reports. However, politics and economics often go together. And if there is one political event that traders cannot afford to overlook this year, it is certainly the U.S. presidential elections, which are set to be held on Tuesday, November 5, 2024. This pivotal event doesn't just influence American citizens—it has a significant ripple effect on global financial markets. From Wall Street to the commodities markets, the implications of the U.S. presidential election could be profound and far-reaching. The candidates American voters will choose between Kamala Harris, the Democratic nominee, and former President Donald Trump, the Republican nominee. Kamala Harris aligns closely with the current president, Joe Biden, especially on domestic policies. She is backing national abortion protections, LGBT+ rights, and significant fiscal stimulus measures, such as student debt relief. She is also a staunch advocate of new legislation to address climate change and wants to move the U.S. economy toward cleaner energy sources. As a presidential candidate, she introduced a staggering $10 trillion climate plan, greatly surpassing Biden’s $1.6 trillion initiatives. In addition, Harris also advocated for a ‘climate pollution fee’ and proposed the elimination of federal subsidies for fossil fuels. Although Harris launched her political career in Silicon Valley, she is now calling for regulations to address the dangers of artificial intelligence (AI) and enhance data privacy rules. Her record on trade policies suggests that she is somewhat sceptical of free trade. ‘There would be no trade deal that would be signed unless it protected American workers and it protected our environment,’ she was quoted as saying at one point. Donald Trump’s previous administration was characterised by tax cuts, deregulation, and a focus on trade policies. During the 2024 campaign, Trump has repeated his intention to cut red tape, reduce government spending, and bring inflation down. He intends to lift the restrictions on fossil fuel production and cancel the electric vehicle mandate. Additionally, Trump seems to be leaning towards protectionism as he has explicitly promised to ‘stop outsourcing and turn the United States into a manufacturing superpower’. Domestically, one of his most radical proposals is to deport millions of illegal immigrants and seal the border. As for the tech sphere, the Republicans aim to put an end to what they describe as Democrats' overreach in regulating cryptocurrencies. They vow to defend the rights of Americans to mine Bitcoin (BTC) and manage their digital assets independently. Additionally, they promise freedom from government surveillance and control of digital transactions. They also plan to overturn President Biden's executive order on AI, which they believe hinders innovation. Implications for the markets Before discussing the potential implications of the U.S. presidential elections on the financial market, there is one important caveat to make—U.S. presidents are not omnipotent. The U.S. is a sprawling nation with numerous institutions, a developed political framework, and a complex system of checks and balances. No president can single-handedly steer the entire country in one direction. For instance, if Kamala Harris becomes president but the Senate remains Republican-controlled, she would face significant hurdles in pushing through her initiatives. Likewise, with a Democrat-controlled Senate, President Trump might find his policies completely stalled. Therefore, while the executive branch of government is undeniably significant, its power has limits and should not be overstated. In this regard, it is worth remembering that in addition to the high-stakes presidential race, this fall's ballot also includes one-third of the U.S. Senate seats (presently held by a slim Democratic majority) and all 435 seats in the House of Representatives (where...