As the U.S. presidential election officially begins voting, market tension has reached a critical point. History has proven countless times that changes in policy direction often become a watershed moment for market trends. In the face of election results, investors find it difficult to accurately assess who will win, and how to adjust market strategies and respond to potential risks has become one of the most important topics at present.

The Market Shows High Uncertainty

Recent data shows that the competition between the two candidates is exceptionally tight, and the market has exhibited unprecedented uncertainty. The expectation of Trump's election once triggered the "Trump trade," but as the election approaches, this trade has gradually receded, leading investors to take profits, which caused a decline in the U.S. stock market and the dollar, especially for assets related to Trump's policies and opinion polls, resulting in cautious market liquidity. Data indicates that October 2023 was one of the months with the lowest volatility in the U.S. stock market during the election year, reflecting a generally wait-and-see attitude among investors before the election.

Historical Experience and Market Volatility

Looking back at the 2016 election, Trump's unexpected victory caught global markets off guard, leading to a sharp decline in stock prices, highlighting the market's high sensitivity to policy uncertainty. In 2020, when Biden was elected, although the initial market reaction was positive, driven by the progress of COVID-19 vaccine development and expectations of Biden's economic policies, subsequent market volatility also reflected short-term instability. These historical experiences remind us that regardless of the election outcome, the market may experience significant fluctuations, and investors need to respond cautiously.

Trump's First Election and USDCNY Trends

Currently, the world is holding its breath for the upcoming election results, and anxiety may further exacerbate market volatility. If the election results are surprising or delayed by several days, there is a possibility of another sharp market adjustment. The rise of the Chicago Board Options Exchange Volatility Index (VIX) also indicates that the market is panicking over uncertainty.

Control Positions, Cash is King

For investors, risk management and asset allocation are particularly important. In the short term, controlling positions, setting stop-loss strategies, or directly opting for cash is an effective means of managing risk.

Especially for stocks and cryptocurrencies, these growth-potential assets tend to be highly volatile in times of high market uncertainty. In the face of an unclear market situation, blind operations will undoubtedly greatly increase investment risks.

For ordinary investors, there is no need to take risks betting on who will win; cash is the optimal choice. It is also advisable to consider looking towards more stable products, seeking certainty amid uncertainty. For example, 4E Wealth Management offers financial products with an annualized return of up to 5.5% in USDT, allowing for flexible combinations of demand and fixed-term deposits, ensuring funds are not idle while waiting for market changes.

Of course, diversified asset allocation helps to withstand the volatility risk of a single market, especially by choosing high-quality value assets as long-term investment targets, which can provide a certain margin of safety in times of high market uncertainty. As an official partner of the Argentine national team, 4E supports various asset classes including cryptocurrencies, traditional stocks, indices, foreign exchange, and gold, offering one-stop trading in U.S. dollar terms and providing more stable growth opportunities.

The election results are expected to be basically determined by tomorrow noon. Regardless of the election outcome, the market will ultimately seek a new balance. Stay calm, prepare mentally, and do not be swayed by short-term market fluctuations; view market changes with a long-term investment perspective.

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