BlackRock: The market does not reflect the risk of US presidential candidates questioning the election results

According to a report by Golden Ten, Jean Boivin from BlackRock Investment Research Institute stated that the market underestimated the risk of someone among next month's US presidential candidates raising objections to the election results. A controversial victory could lead to weeks of highly chaotic legal battles, which could shake up risky assets. Although the stock market is still close to its historical high, treasury bond has been hit by the sell-off. Attempting to trade the US election is a 'foolish act', and what really needs attention is the controversial election scenario, which the market has not fully reflected. If investors want to prepare for a certain situation, the controversial outcome of the US election is one of them. Due to the tight election situation, voters and investors are increasingly likely to wait until election night to know the results - especially if any candidate chooses to question the vote counting results in key swing states.