Election Volatility Risk May Have Just Shifted to December
- RBC sees potential for pickup in swings if election gets ugly
- Silverman says demand for downside protection is rising
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Volatility is falling across asset classes with Joe Biden on the brink of victory over President Donald Trump. But traders aren’t out of the woods yet, as a number of catalysts could reignite price swings, according to strategists.
Even if Biden wins -- and that isn’t certain yet -- there’s still a lot to be resolved. Lawsuits related to the results in key states, the makeup of the Senate which remains in doubt, and the potential for public unrest if the result hinges on contested ballots all have the potential to send volatility higher.