Citi Analysts Believe Elections Could be Worse than Black Swan

The presidential election has the potential to cause considerable volatility and could possibly re-price a number of markets across the globe, analysts at Citi highlighted in a new note on Monday.

“With huge uncertainty around the outcome and the consequent shape of economic and political policymaking, many asset prices are likely to see increased volatility. This, in itself, could provide a considerable headwind to growth,” analysts at the bank, including Tina Fordham, said in the note.

A “black swan” event is a metaphor used by the investment community to describe an event that comes as a surprise, such as the crash of the U.S. housing market in 2008 or the Japanese earthquake of 2011. However, Citi sees these as not being able to cause the maximum disruption in markets.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza