TechFlow news — On October 24, Jean Boivin from BlackRock Investment Institute said the market is underestimating the risk of one of the U.S. presidential candidates challenging the election results next month. A contested outcome could lead to "weeks of extremely chaotic legal battles," which might unsettle risk assets.
While equities remain near record highs, government bonds have already been hit by sell-offs. Attempting to trade on the U.S. election is a "foolish exercise." What really matters is a contested election scenario—one that the market hasn't adequately priced in. If investors want to prepare for any situation, a disputed U.S. election result should be among them. Given the tight race, both voters and investors are increasingly likely to wait beyond election night for a final result—especially if either candidate chooses to challenge vote counts in key swing states.
