American and global investors need to seriously consider uncertainty
involving American politics. If you had radical populists/corrupt politicians
running for office in some other country, we would be far more concerned about
potential market turbulence. Apparently, investors are finally waking up to the
danger. According to the WSJ:
“Wall Street’s bet
against fear, a big winner this year, is starting to wane.
The relative calm
in the U.S. stock market has made wagering on a decline in the CBOE Volatility
Index, or VIX, a popular trade for much of this year. The two biggest
exchange-traded funds that short volatility, as betting on a decline in the VIX
is known among traders, are up 46% this year. Hedge-fund bets that the VIX will
decline reached a record in September, according to data from the Commodity
Futures Trading Commission.”
MIT economist Simon Johnson on the consequences of a US electoral surprise in November:
https://www.project-syndicate.org/commentary/economic-consequences-of-trump-victory-by-simon-johnson-2016-10
MIT economist Simon Johnson on the consequences of a US electoral surprise in November:
https://www.project-syndicate.org/commentary/economic-consequences-of-trump-victory-by-simon-johnson-2016-10
Related:
Why Financial Markets and Global
Corporations Need to Rethink Political Risk
http://vivekjayakumar.blogspot.com/2016/09/why-financial-markets-and-global.html