Citigroup is getting ready to capitalize on market swings caused by the upcoming election. The bank’s equity strategist, Scott Chronert, believes the S&P 500 is currently fairly valued, but the election could push the market in either direction depending on who wins.
“Trump Rip” or “Harris Dip”?
Chronert predicts that a “Trump rip” (a surge in the market if Donald Trump wins) or a “Harris dip” (a drop if Kamala Harris wins) could create trading opportunities.
He explains that a Trump victory could lead to tariffs, potentially hurting the economy and impacting growth expectations. On the other hand, a Harris win could lead to tax increases, which could also affect the market.
JPMorgan’s Election Playbook
JPMorgan Chase also has its own election playbook. They believe the “Trump trade” (a bet on a stronger dollar and a booming economy) played out in early October.
However, they expect a weaker dollar if Harris wins. They believe a Republican victory could actually lead to a stronger dollar, despite the party’s desire to weaken it.
In short, Wall Street is bracing for a wild ride this week as the election results unfold. Both Citigroup and JPMorgan are prepared to take advantage of the market volatility, but they’re also warning investors to be cautious. /p>
