Prepare to leverage volatility on election night: Citi strategist
Citi Wealth chief investment strategist and chief economist Steven Wieting sits down with Market Domination Overtime Hosts Julie Hyman and Josh Lipton to discuss how market volatility (^VIX) ahead of the election could present an attractive entry point for investors. "In the last two US election nights, [it was the] same cast of characters with the absence of Joe Biden. The range on US equities over the election evening was about six percentage points [and] US [Treasury] Yields [were] up a couple of basis points. They've ranged nearly 30 basis points over the course of a day," Wieting says. "There's a time in which markets (^DJI, ^IXIC, ^GSPC) are going to try to very, very quickly absorb the implications” of the election night. He explains that as a "true long-term investor," he's monitoring if "anything gets greatly exaggerated, if there's too much pessimism, too much optimism, that's the sort of thing that you can take advantage of in the aftermath of election results.” Wieting explains how the "implied volatility on the S&P 500 is expected to be very high for that one night I mentioned, but it's expected to fall quickly after hedging costs are pretty low..." To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Naomi Buchanan.
