IG: One of the UK’s top CFD brokers believes that the US markets can expect a post-election rally after polling day on November 8.
IG believe that the election has yet to have a major impact on the markets, and while an upturn is expected once the identity of the new President is known, an uphill ride ‘will be bumpy’.
Keep reading to find out more.
In their analysis of US markets with weeks until polling day, IG – one of the best CFD broker houses in the UK – says that ‘US investors seem not just unconcerned but almost unaware that an election is upcoming’.
For the last month the four major US stock indices have been stuck on a ‘volatile, range bound’ action which has benefited those taking quick profits rather than those looking for long-term direction.
As one of the largest CFD brokers, IG are well-positioned to speculate on the future. After the second presidential debate, a controversial video, and a new poll showing one candidate with an 11-point lead, the markets began to show signs of an uptrend, with the Nasdaq 100 hitting a new high.
IG say ‘short-sellers shouldn’t marry their positions and longs should not stay long for very long. Any uphill ride will be bumpy’.
Top CFD broker says that US market could rally post-election, irrespective of winner
US election years often do see similar market patterns. Often there is a lull in markets in September and a rally after election day – irrespective of the winner. “Investors are often just relieved that the inexplicably long US campaign is over and we can resume our normal partisan gridlock” say top CFD broker IG.
However, many analysts believe that victory for one candidate might cause a drop in stock values and a surge in the dollar versus other currencies – particularly the Mexican peso.
IG concludes that having seen the former (a lull in September) the markets ‘may yet see the latter’ – an upturn post November 8.
Compare Vetted Investing, Trading & Currency Accounts
|Investing Accounts||Trading Platforms||Currency Transfers|
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.