Marc Chandler: Bloomberg Interview - The Election, Peso, Equities, Yuan

November 8, 2016

1 minute read

Cool Video: Bloomberg Interview--Peso, Equities, Yuan

Even before the my polling station opened today, I had the privilege of being on Bloomberg Surveillance today with Gina Cervetti and Tom Keene.

We talk about a wide range of issues directly and tangentially related to the US election. We discuss the outcome the market appears to be discounting. We talk about peso's strength, which began in the second half of last week, before the FBI dropped its recent look at Clinton's email. The nine-day slide in the S&P 500 may have been aggravated by the tightening of some polls, but there were other factors at work.

I also suggest the Fed funds futures, which were rock solid in recent weeks, despite the vagaries of the polls, points to a low level of concern that Trump would win. A Trump victory would be a surprise, and the people he would surround himself with and the policies he would pursue, are significantly less known that Clinton. This, as well as what investors do know, means that a Trump victory could potentially destabilize the capital markets. In turn, the destabilization of the markets would likely see the odds of a December hike downgraded. Bloomberg provides two clips of my interview.

Disclaimer

This post was originally published by Marc Chandler at his blog, marctomarket.com

Author

Marc Chandler

Marc Chandler has been covering the global capital markets in one fashion or another for more than 30 years, working at economic consulting firms and global investment banks.

After 14 years as the global head of currency strategy for Brown Brothers Harriman, Chandler joined Bannockburn Global Forex, as a managing partner and chief markets strategist as of October 1, 2018.

Disclaimer
Opinions expressed are solely of the author’s, based on current market conditions, and are subject to change without notice. These opinions are not intended to predict or guarantee the future performance of any currencies or markets. This material is for informational purposes only and should not be construed as research or as investment, legal or tax advice, nor should it be considered information sufficient upon which to base an investment decision. Further, this communication should not be deemed as a recommendation to invest or not to invest in any country or to undertake any specific position or transaction in any currency. There are risks associated with foreign currency investing, including but not limited to the use of leverage, which may accelerate the velocity of potential losses. Foreign currencies are subject to rapid price fluctuations due to adverse political, social and economic developments. These risks are greater for currencies in emerging markets than for those in more developed countries. Foreign currency transactions may not be suitable for all investors, depending on their financial sophistication and investment objectives. You should seek the services of an appropriate professional in connection with such matters. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete in its accuracy and cannot be guaranteed.