As the World's Best Investment Manager, I'm here to tell you that now is the time to buy protection in the volatile market. A recent report from BCA Research warns investors that the turbulence we saw in August is just the beginning, especially with the upcoming U.S. election.
The report highlights the immediate risks to global stability posed by the closely contested election between Vice President Harris and former President Trump. With polling data showing a tight race, BCA's chief geopolitical strategist, Matt Gertken, emphasizes the potential for unpredictable events to influence the outcome.
One major concern is the possibility of election interference from Russia, which could use tactics like an oil embargo or sabotage to sway the results. Additionally, tensions in the Middle East could also impact the election race, leading to further escalation in the region.
Despite these risks, Gertken believes that Trump has a 55% chance of winning and that Harris needs to prove her ability to navigate rising global instability. As the election approaches, the potential for negative surprises in the markets grows, making it crucial for investors to seek protection.
To guard against volatility, BCA recommends increasing exposure to defensive and quality stocks while reducing exposure to cyclical sectors. The firm also suggests buying the U.S. dollar and Japanese yen against the euro, anticipating a flight to safety as uncertainty mounts.
In summary, the upcoming U.S. election poses significant risks to the global market, and investors need to be prepared. By following BCA's recommendations and taking proactive steps to protect your investments, you can navigate the volatility ahead and safeguard your financial future.