US elections: Investors in financial markets are heading towards safe assets to avoid risks

Global markets are expected to witness fluctuations with the start of voting in the US elections on November 5, recalling scenes from the Brexit referendum and the US elections in 2016. In those elections, markets were subjected to selling operations before the polling day, but quickly recovered after Trump’s victory speech, according to specialized reports, including (Euro News).

Reports indicate that with the approach of the US presidential elections, markets are witnessing remarkable transformations with increasing uncertainty among investors about the possible results. In light of the close competition between Trump and Harris, many investors have rushed towards safe assets to avoid risks.

The US presidential elections are among the most closely followed geopolitical events by investors. In any case, the potential for turmoil in the stock market cannot be underestimated depending on who becomes the next president of the world’s largest economy.

However, the “Trump trade” or the “Harris trade” do not provide guarantees for stable markets, as post-election policies will be the decisive factor in shaping market paths. “The biggest challenge is to confirm the outcome, regardless of who wins,” said Michael Brown, chief research strategist at Pepperstone London. “The certainty that the announcement of the results would bring would restore stability to markets, allowing investors to adjust their positions.” If Trump wins, it is likely to lead to more market volatility over the next two years, while a Harris victory could provide markets with a more stable outlook, allowing markets to move in line with natural economic forces.