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Press note: Trump-Clinton Market Flareup Is Far from a Panic: Reality

Check

In exactly 4 days people from USA are going to elect the new president
of the country and this situation its really vital for the recent
movements of the financial markets in which the volatility index its high
and for this reason the market has been on a really high percentage of
trading among investors, due to the elections that are nearby, according
to The Chicago Board Options Exchange, Volatility Index, the so-called
fear gauge, climbed to the highest since June, while the Merrill Lynch
Option Volatility Estimate index is the highest since September.

Theres a bit of preoccupation among investors about a probably election

of candidate Donald Trump which promises about trade agreements
renegotiated and the probability of the build of a wall among borders
with Mexico could compromise the decision of some investors and the
reliability about making capsizals in the US territory.

Theres also concern and anxiety about how this election its going to
affect financial decisions and actions of some investors also there is
concern about Mexican Peso, Swiss Franc and Russian Ruble because
after this elections result those are going to be the principal affected
currencies according to the popular concern but conferring to Russ
Certo, managing director of rates at Brean Capital in New York
Sometimes we climb the wall of worry. Im discounting a lot of the
emotion that I see coming across. So its important to make the right
moves and be prepared to the results that this election its going to have
in the financial market.

In my opinion this election its actually having a great impact on the

financial markets as we observed in the Volatility Index that is
particularly high which means there is a lot of concern and general
preoccupation, but I think that best way to solve this problem its making
good planning about financial decisions in which we may consider
whether the winner may be Clinton or Trump it doesnt have to affect the
making of reasonable decisions and less risky ones, also its fundamental
put aside the fear.

Vocabulary
 - Volatility: liable to change rapidly and unpredictably,
especially for the worse: the political situation was becoming
more volatile.
- Option: a right to buy or sell a particular thing at a specified
price within a set time: Columbia Pictures has an option on
the script | [ with infinitive]: an option to buy the land.
- Bond: a certificate issued by a government or a public
company promising to repay borrowed money at a fixed rate
of interest at a specified time.

Article:

Trump-Clinton Market Flareup Is Far From a Panic: Reality Check

2016-11-02 14:35:19.994 GMT

By Brian Chappatta
(Bloomberg) -- For all the angst over the tightening U.S.
presidential election, if investors take a step back theyll see
financial markets are far from a full-on panic.
In a sign that all the hand-wringing is still limited by
historical standards, a Bank of America Corp. index tracking
global volatility across asset classes is below its average for
2016, even as the race has grown more competitive since last
week, when the FBI reopened an investigation into Democratic
nominee Hillary Clintons e-mails.
Investors can glean a similar story from the Mexican peso,
among the best market barometers of the race. While its
weakened in five of the past six days, the currency is still up
about 3 percent from a record low in September, indicating
traders see a lower chance of a victory by Republican nominee
Donald Trump, who has pledged to renegotiate trade agreements
and build a wall along Americas southern border. Then theres
gold, a traditional haven thats on a five-day winning streak.
But it had a longer run in September, and is right around its
six-month average.
While global bonds have rallied on the increased
uncertainty, the market is only paring losses from a brutal
October, which was the worst month since September 2014,
according to the Bloomberg Barclays Global Aggregate Index. The
S&P 500 index has returned about 5 percent this year, including
dividends, and remains about 4 percent from a record high. In
Europe, stocks are more than 8 percent above levels from the
immediate aftermath of the U.K.s June vote to leave the
European Union.
People talk about big moves in the Mexican peso and Swiss
francs and even gold, but the moves really havent been that
big, said Russ Certo, managing director of rates at Brean
Capital in New York. Sometimes we climb the wall of worry. Im
discounting a lot of the emotion that I see coming across.
Granted, anxiety is higher than it was before the events of
last week, as the Nov. 8 vote approaches. The Chicago Board
Options Exchange Volatility Index, the so-called fear gauge,
climbed to the highest since June, while the Merrill Lynch
Option Volatility Estimate index is the highest since September.
Regardless, the capital markets keep humming along, even
with the mounting anxiety. Six investment-grade bond deals
priced with little or no concessions on Nov. 1.

To contact the reporter on this story:

Brian Chappatta in New York at bchappatta1@bloomberg.net
To contact the editors responsible for this story:
Boris Korby at bkorby1@bloomberg.net
Mark Tannenbaum