Probable Election Outcomes And The Effects On The Markets

As stated in a previous article, this year has seen its share of volatility on the markets in regards to the US Presidential Election. With every new headline, the markets seem to sway this way and that.

Bloomberg strategists put together their predictions of what would happen should either Hillary Clinton or Donald Trump be the next President of the United States, then went one step further and added what they felt would happen if the Democrats controlled both the House of Representatives and the Senate. They assumed if Donald Trump wins, the Republicans would remain in control of both branches of Congress. 

With all of the volatility of late, what will the outcome of the elections bring? Well, if Donald Trump wins, the Bloomberg strategists say that in the commodities and energies markets, traders will find it very positive for gold, and other precious metals can be seen as havens. His anti-Iran rhetoric predicts good things for oil prices. However, his pro-coal stance registers badly for natural gas. Copper may rise on infrastructure stimulus.

If Hillary is in the Oval Office, all her talk of climate change and her environmental agenda is bad for oil and coal but good for renewables. The markets would see much of the same if the Houses are under Democratic control, if not more so.

It is possible to trade commodities with limited risk using CFTC-regulated US based Nadex spreads. Traders can trade binary options and spreads with limited risk and a lower cost of entry. The trade can never be stopped out or margin called.

Nadex offers binaries and spreads on these metals, energies and agricultural products:

Metals: gold, silver, copper

Energy: crude oil and natural gas

Agricultural: corn and soybeans

Traders are able to trade commodity futures prices with smaller risk. The maximum possible loss is set before a trade is entered. If the market spikes against the trade, the loss is limited. Being stopped out won’t happen even if the binary’s value goes to zero.

Apex Investing offers traders a free trading education. When trading commodities, traders can find strategies and systems to use as well as a news calendar and links to valuable information like the Weekly Weather and Crop Bulletin. Also available to all traders is the Apex Scanner for trading Nadex. It is available for both binary options and spreads.

If Trump is elected and the Gold market is looking positive, a trader could decide to buy a gold binary option. If Clinton is elected, one might consider selling a crude oil spread. Whatever happens in the markets, traders can profit with the right education.