Trump media transactions surge… International gold price is at an all-time high again
U.S. Democratic presidential candidate Vice President Harris (left) and Republican candidate former President Trump
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(Seoul = Yonhap News) Reporter Choi Yun-jeong = Ahead of the US presidential election on the 5th of next month, investors are increasing related investments, such as direct betting or purchasing safe assets to avoid risk.
The Wall Street Journal (WSJ) reported on the 20th (local time) that investors are increasing investments related to the U.S. presidential election, despite warnings that the post-election financial market situation was different from predictions based on past cases.
Investors are betting directly on the election results on betting platforms such as ‘Kalsi’.
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In the stock market, Trump Media (DJT), the parent company of Truth Social, is attracting the attention of day traders as it fluctuates greatly due to changes in the outlook for the election results.
As expectations for the victory of former President Donald Trump, the Republican presidential candidate, rise, Trump Media’s trading volume has surged and its stock price has doubled since the middle of last month.
The WSJ reported that some speculate that some big players may have placed large bets on former President Trump in the betting market to raise the stock price of Trump-themed stocks.
As former President Trump made a pledge to support the virtual currency industry, the virtual currency market was also tied to the Trump theme.
Cryptocurrency exchange stock prices rose 25% this month.
Bloomberg News reported that Bitcoin, the leading virtual currency, exceeded $69,000 per piece for the first time in four months.
There was a net inflow of $2.4 billion into the spot Bitcoin exchange-traded fund (ETF) over the six days until the 18th, pushing up the price.
Bloomberg News explained that expectations that regulations related to virtual currency would change favorably after the presidential election were influential.
On the one hand, some investors are trying to minimize risks related to the presidential election.
They are focusing on reducing election-related volatility or looking for investments that will deliver good results no matter which candidate is elected.
UBS recommended to clients that financial and utility stocks are likely to perform well under any government.
He explained that utility stocks such as electric power are representative defensive stocks and are expected to benefit from the recent increase in energy demand related to artificial intelligence (AI).
Financial stocks are expected to maintain the status quo if Democratic candidate Vice President Kamala Harris is elected, and are expected to benefit from deregulation under former President Trump’s administration.
In addition, the WSJ interpreted that the price of precious metals such as gold, a traditional safe asset, soared this year as a sign that investors are hedging financial asset risks ahead of the election.
Bloomberg News reported that the international gold price rose to $2,725 per ounce on the morning of the 21st, breaking an all-time high.
The rise in gold prices on this day was also influenced by political instability in the Middle East. Israel is reportedly discussing an attack on Iran in connection with the drone attack on Prime Minister Benjamin Netanyahu’s home.
In addition, hedge funds’ recent increase in betting on the decline of the Chinese yuan and Mexican peso was interpreted as preparation for the possibility of disruption to global trade if former President Trump is elected.
It was expected that former President Trump’s tariff policy would reduce demand for the currencies of these countries, which are major trading partners of the United States.
Report via KakaoTalk okjebo
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2024/10/21 11:50 Sent
