{"id":13110,"date":"2024-05-06T03:15:19","date_gmt":"2024-05-06T03:15:19","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=13110"},"modified":"2024-05-06T03:15:19","modified_gmt":"2024-05-06T03:15:19","slug":"election-years-could-be-profitable-for-political-traders","status":"publish","type":"post","link":"https:\/\/www.vtmarketsmy.com\/cn\/learn\/election-years-could-be-profitable-for-political-traders\/","title":{"rendered":"Election years could be profitable for political traders"},"content":{"rendered":"\n

Political shifts may sometimes present unprecedented opportunity. Learn how in this article.<\/em><\/p>\n\n\n\n

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When elections are looming, politics take the center stage. It\u2019s hard for anyone to ignore the buzz, especially the US elections. These events can really shake up the global markets, creating some exciting opportunities for traders.

Case point<\/strong><\/a>: Here’s how much you’d make in the S&P 500 if you invested since Biden took office<\/strong><\/p>\n\n\n\n

If you had invested $1,000 in the S&P 500<\/a> when Joe Biden became president in 2020, your investment would have increased by about 23.7% by now. During Trump’s presidency, the S&P 500 had higher average yearly gains of 14.5%, with a total increase of around 67% over his four years in office.

This shows there\u2019s money to be made during these uncertain times.<\/p>\n\n\n\n

What\u2019s at stake in the 2024 US elections?<\/strong><\/h3>\n\n\n\n

As the 2024 presidential race heats up, you might want to keep a close eye on Trump administration’s Dollar Devaluation<\/a> plans. Plans to devalue the U.S. dollar by pressuring other countries to adjust their currency values represent the start of a trade war.

What are the implications? We can\u2019t predict the future, but we can speculate.<\/p>\n\n\n\n

The markets can be unpredictable: <\/strong>With the latest sticky US inflation numbers and rising tensions in the Middle East, the idea of \u2018devaluing\u2019 the dollar is bound to shake up trust in it as a reserve currency, triggering global financial market volatility and boosting inflation.<\/p>\n\n\n\n

The Fed\u2019s future:<\/strong> If the Federal Reserve lowers interest rates in 2024, Trump may interpret it as the deep state aiding Biden. And if Trump gets re-elected, he’s unlikely to retain Jerome Powell as Federal Reserve chairman<\/a> after his term ends in 2026. It\u2019s hard to predict what this will mean for the independence of US monetary policy.<\/p>\n\n\n\n

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Likely Republican nominee Donald Trump says he would not appoint Jerome Powell to head the Federal Reserve if he is reelected as president in November https:\/\/t.co\/c4LsKLtcgJ<\/a><\/p>— Bloomberg (@business) February 2, 2024<\/a><\/blockquote>