Wall Street’s trading desks are having a great year. The election could keep that going.

Published On Oct 24, 2024, 4:00 AM

Wall Street's trading desks are experiencing strong performance thanks to increased trading volume, especially anticipated around the 2024 presidential election. Major banks like JPMorgan Chase, Goldman Sachs, and Citigroup reported record trading revenues through the first three quarters of 2024, with expectations that the election will spark further trading activity. The market is viewing the post-election environment as highly volatile, which generally benefits trading desks focused on short-term positions. Hedge fund managers are already positioning themselves for potential market changes, particularly if Republican Donald Trump is elected.

Stock Forecasts

Investors should pay attention to banks and trading companies as they tend to benefit from increased trading activity during and after elections. Stocks associated with large financial institutions are likely to see upward momentum during this volatile period as trading volumes rise following election results.

Considering the current environment where market volatility is expected to rise, ETFs that focus on financial sectors could outperform. Financial sector ETFs can capture the overall performance of this expected growth in trading volume and profitability of banks.

Due to potential uncertainties associated with tariff and regulation changes depending on the election outcome, investors should be cautious about industries heavily tied to policy changes. This could lead to some volatility in the sectors directly affected by the election results, particularly in materials and commodities sectors.

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