As elections approach, here are JPMorgan’s key strategies

Investing.com - In the context of the global electoral cycle of 2024, financial markets face uncertainties and opportunities due to the possible changes in the governmental policies of significant economies. This election period, which encompasses key nations such as the United States, the United Kingdom, India, Mexico, and South Africa, has led analysts at J.P. Morgan to adopt cautious and proactive strategies.

⚠️As elections approach, protect your investments with InvestingPro, with actions and strategies that shield your portfolio against volatility and uncertainty. Use coupon code ELECTIONS24 to enjoy a spectacular discount on our 1 and 2-year plans. Click here and find out if you are eligible for an EXCLUSIVE DISCOUNT.

In the United States, the possibility of significant changes in trade, foreign, regulatory, and fiscal policies depending on the election outcome is looming. To mitigate risks, thematic baskets of stocks designed to cover various political scenarios have been created. In the realm of commodities, an administrative change could result in a lighter regulatory burden for oil and gas companies, although with downside risks for base metals and agricultural exports due to potential trade wars and a stronger dollar.

On the other hand, recent market developments show a cautious approach. Last week was marked by expectations of long-term inflation in the U.S. and signals from the ECB for a possible cut in June. Strategies include maintaining a neutral stance on duration in the U.S. and the Eurozone ahead of inflation data, with bets on steepeners to benefit from a steepening yield curve.

In the UK, despite solid economic data, the Bank of England adopted a dovish stance, boosting bullish bets on the SONIA curve. Meanwhile, in emerging markets, although rate cuts persist, there is a lower expectation of future reductions, influencing a neutral stance on local duration.

In the bond arena, despite an increase in issuance, investment-grade bond spreads in the U.S. narrowed due to robust demand, indicating solid technical conditions. In European credit, a limited range in the short term is anticipated due to an environment where "bad news is good news."

Finally, in the currency market, although a medium-term bullish outlook on the U.S. dollar persists, tactical concerns arise from incipient signs of a slowdown in U.S. growth exceptionalism and investor oversaturation in long positions.

These trends and strategies reflect investors' need for adaptability and caution in a context of potentially disruptive political change, where attention is focused on protecting against various contingencies and seizing emerging opportunities.

As a reader of this article, you have the opportunity to obtain a spectacular discount to acquire the powerful tools of InvestingPro. Use the code ELECTIONS24 to purchase your subscription with an additional 10% discount on current promotional prices. LAST 10 COUPONS! Just click here or select one of the following options to apply your offer:

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: