Stock market volatility ahead of presidential elections typically starts picking up right now

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VIX Index (Mar'21),Government And Politics,Stock Markets

The firm found that a closely followed gauge of fear on Wall Street has historically spiked as Americans cast their ballots for president.

Brace yourself. Market volatility will likely increase from here as the race for the White House enters its final weeks, according to Wolfe Research. Technical strategist Rob Ginsberg tracked the average move of the CBOE Volatility Index during a presidential election year. He excluded 2008, a year that saw unusual market movement as America grappled with the global financial crisis.

"Friday's favorable economic data helped to bolster action for now, but we see it more so as pushing off the inevitable," Ginsberg said. "The VIX historically spikes into the election. With momentum rolling over and several sectors seeing healthy pullbacks of late ... we feel the S & P is overdue for another 3 – 4% correction." Traders already got a taste of a high-volatility market last week.

 

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