NEW YORK: Market volatility is back: and investors expect more wild swings in the coming weeks and months as the U.S. presidential election closes in.
Several investors say that the VIX could climb further as the election approaches, especially given that certain indicators show a tightening race. In betting markets, Democratic nominee Joe Biden's lead over President Donald Trump has significantly narrowed, according to data from RealClearPolitics.
Earlier that year, the British pound plunged to its lowest level against the dollar in decades after the United Kingdom voted to leave the European Union. McDonald, meanwhile, has bought December and June call options on the ProShares Ultra VIX Short-Term Futures ETF, which similarly rises alongside volatility.