U.S. Markets closed
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • Dow 30

    29,910.37
    +37.90 (+0.13%)
     
  • Nasdaq

    12,205.85
    +111.44 (+0.92%)
     
  • Russell 2000

    1,855.27
    +10.25 (+0.56%)
     
  • Crude Oil

    45.53
    -0.18 (-0.39%)
     
  • Gold

    1,788.10
    -23.10 (-1.28%)
     
  • Silver

    22.64
    -0.81 (-3.44%)
     
  • EUR/USD

    1.1970
    +0.0057 (+0.4788%)
     
  • 10-Yr Bond

    0.8420
    -0.0360 (-4.10%)
     
  • Vix

    20.84
    -0.41 (-1.93%)
     
  • GBP/USD

    1.3314
    -0.0042 (-0.3169%)
     
  • USD/JPY

    104.0850
    -0.1650 (-0.1583%)
     
  • BTC-USD

    17,671.44
    -66.06 (-0.37%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • Nikkei 225

    26,644.71
    +107.40 (+0.40%)
     

Market Volatility Surges Ahead Of Polarizing Election

Daniel Laboe
·2 min read

The “Fear Gauge” (aka the VIX) is back up to its highest level since mid-June. All three major US indexes notched the second consecutive month of losses. Investors & traders are getting the pre-election jitters and beginning to put on protection.

Roughly 63% of investors ($1 million+ in assets) have tweaked their portfolio ahead of the election, according to UBS. Portfolio adjustments like increased cash holding, sector reallocation, or derivative protection.

The market anxiety is being burgeoned by a resurgence in COVID cases and stall in fiscal stimulus discussions. The US can’t afford another economic shutdown.

The market appears dislocated today as investors pull profits from 2020’s secular outperformers like tech and consumer discretionary, which can be seen with the Nasdaq 100’s QQQ lagging performance. Investors are putting their money back to work in underperforming ‘value’ plays like energy and industrials, being illustrated by the Dow Jones Industrial Average’s DIA advancement today.

I expect volatility to remain with us through the end of the year, not to mention ripening buying opportunities.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Invesco QQQ (QQQ): ETF Research Reports
 
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research