The US stock market is experiencing a recovery after a July recession scare that saw the S&P 500 drop nearly 10% from its all-time high. The index has since rebounded almost 10% from its August 5 low, fueled in part by positive economic reports on retail sales, inflation, and producer prices. These reports have led to expectations that the Federal Reserve will lower interest rates later this year.
However, with the upcoming US presidential election in November, analysts warn that market turbulence may not be over. The race between Vice President Kamala Harris and former President Donald Trump is expected to generate significant market volatility, especially as Harris currently leads in many polls. Election years are historically known for their impact on global markets, with traders anticipating intensified fluctuations and shifts in investor sentiment. In fact, a JPMorgan survey earlier this year revealed that 20% of traders believed the election would be the primary driver of stock market movements in 2024.
Presidential elections influence businesses and the economy through policy changes. Healthcare policies can affect pharmaceutical stocks, while shifts in energy policy can impact oil and gas or renewable energy companies. Regulatory changes, fiscal policies, trade agreements, and spending priorities are all subject to change based on election outcomes, creating both risks and opportunities for investors. With the uncertainty surrounding the future economy, global markets tend to exhibit high volatility as investors react to the latest polling data and presidential debates. This can result in significant price swings, making it crucial for traders to stay informed and adapt their strategies.
During election periods, many traders prefer to focus on commodities, indices, and foreign exchange. For instance, in 2016, following the UK’s Brexit referendum, the Germany Dax 40 index became the most traded instrument, and the EUR-USD currency pair was the second most popular.
Navigating the market during an election year requires a strategic approach. Investors can capitalize on the heightened volatility by utilizing the right tools and strategies. Access to reliable, real-time data and predictive analytics is essential for making informed decisions. VantagePoint, a leading AI-driven market forecasting software, provides valuable insights to navigate the complexities of election years.
VantagePoint’s AI-powered software leverages trained neural networks to provide traders with highly accurate, predictive forecasts of primary markets. These forecasts are based on intermarket analysis, where the software analyzes interconnected global markets to identify hidden patterns that humans might miss. Unlike traditional lagging indicators, which react to past price action, VantagePoint’s leading indicators offer market predictions with up to 87.4% accuracy, giving traders a significant advantage.
VantagePoint also helps traders make informed asset selections, identifying the best stocks and options to trade. It’s compatible with forex, crypto, futures, and commodities. The Intelliscan feature evaluates thousands of assets, highlighting the most promising stock and options opportunities. With actionable insights, traders can confidently target assets with high potential for growth, minimizing effort and maximizing efficiency.
Traders seeking to gain an edge during the election year can consider incorporating VantagePoint into their strategies. The AI-driven forecasts provide a deeper understanding of future market movements, allowing traders to position themselves for success. VantagePoint is currently offering a free guide titled Electionomics 2024, which outlines trading strategies to maximize profits during the election season using predictive AI.
For more information on VantagePoint, visit www.vantagepointsoftware.com.
