Published On: Tue, Oct 18th, 2016

Navigating through the Hillary Clinton, Donald Trump election, staying financially safe

In less than a month the United States of America will be headed for its presidential general election to elect its 45th head of state. Based on the recent polls, either Hillary Clinton and Donald Trump will be occupying the White House next.

The two top candidates have; however, been criticized sharply by the U.S. citizens and many deem both to be unfit to be the president. But having no other viable alternatives in the two major political parties, the electorates are left with high tensions and uncertainty as to how the outcome of the elections will be.

In such economic times when the people are not sure about their future, they tend to be more risk averse and try as much as they can to protect both their social and economic interests. Investors get jittery when uncertainty looms in the markets resulting to high fluctuations in prices of assets in the financial markets. With such random price movements, you might end up losing a lot of money during the elections period; and take a long time to recover after the election fever is over.

Cash-out and trade on underlying assets

Not everyone loses their money when markets are volatile though; with prior preparation and strategic planning, you can sail through the election period safely making huge gains while at it. To tame the market when it is experiencing huge price fluctuations, you can opt to stay out of it and trade on the price movements themselves. This involves lowering the level of actual financial assets you hold in the market and investing the cashed-out money in trading on the price movements of the assets through online trading companies.

Online trading companies such as Stern Options provide you with a platform to trade on the assets in the markets without actually owning them. This lowers your risk levels since you are not holding the actual assets and hence even if their prices go down you are not stuck with the low prices for as long as it lasts. With binary options trading, you make money both when the prices are falling as well as when the prices are rising. All you need is to predict the price movement for your chosen asset in the market and if by the end of the predetermined trading period your prediction is true, you get a return. In the current market condition when asset prices are randomly fluctuating, you stand to gain from accurately following through the market trends and placing trades based on whether you expect prices to go up or go down.

photo/ donkeyhotey

photo/ donkeyhotey

Invest in gold to store value of your wealth

Veteran investors have mastered the art of navigating through economic tough times by shifting their investment portfolio from one asset class to the other depending on the prevailing market condition. In uncertain times such as during elections and wars, gold has traditionally been regarded as a safe haven and the belief still holds to date. The value of gold is not highly affected by changes in the economic environment; hence most wealthy people prefer to use it as a store of value when the storm rocks the economy and financial markets become turbulent. Investing in gold could also help you maintain the value of your wealth during this election period and avoid losing the value of your money due to fluctuations in local currency value against global peers.

Uncertainty during election years is a common phenomenon across the world. In the US, this year’s elections have the stakes even higher. Donald Trump has never been in the political scene before and no one really knows how his proposed policy changes might end up affecting US foreign relations with America’s global partners.

On the other hand, Hillary Clinton is perceived to be less trustworthy and having been in the political arena for a long time, some citizens feel that she might not have anything new to bring to the US people during her presidency. The fact that most working class Americans are also tired of politicians who do not seem to care about the ordinary citizens lifts the burden of proof for Hillary in her campaigns.

Faced with the unknown, one of the ways to remain safe this election period is by cashing-out your investment in financial assets and finding alternative ways to trade on them without owning the underlying assets. Online trading of binary options provides such an alternative that you can access from the comfort of your home. On the other hand, you and choose to invest in gold and store the value of your wealth; before returning back to the market after the election fever is over.

Author: Lolita Di

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