Analyst: Markets are gearing up for a Trump win
On Oct. 25, market analyst Gabriel Rubin said Trump is neck-and-neck with Harris in the polls and investors are taking their cues from the betting markets, where the odds have shifted in Trump's favor. With U.S. bond yields climbing to three-month highs this month, the dollar has rallied more than 3 percent so far in October, partly as markets prepare for the possibility of higher U.S. tariffs in the wake of Trump's victory, which could push up inflation and force the Federal Reserve to keep raising interest rates.
Trade worries have pushed expected volatility in the euro over the next month to an 18-month high. marlborough fixed-income portfolio manager James Athey said, “We have shifted our portfolios to a defensive strategy.” He expects the dollar to rise further and has reduced his exposure to U.S. Treasuries in favor of German bunds.
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