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Is 2016 first? Investors Ready for Big Market Movements with US Elections Approaching



Is 2016 first?  Investors Ready for Big Market Movements with US Elections Approaching

NEW YORK (Reuters) – Market volatility is back – and investors anticipate further sharp fluctuations in the coming weeks and months as the US presidential election approaches.

PHOTO: BGC Partners traders look at screens after Donald Trump’s victory in the US presidential election in London, UK, November 9, 2016 REUTERS / Toby Melville

Some observers say that regardless of who wins the November 3 elections, markets are likely to become more turbulent. The economic uncertainty caused by the coronavirus pandemic continues to threaten, and the possibility of a delayed count of votes due to the large number of ballots sent by mail has also worried some investors. What’s more, the build-up in large technology-related stocks increased risk, as evidenced by the sharp sell-off in the market on Thursday.

“It’s just a situation where the conditions are in place for extraordinary profits,” due to volatility, said James MacDonald, executive director of Los Angeles-based hedge fund Hercules Investments.

The Cboe Volatility Index has risen over the past two weeks, with investors chasing further gains in US stocks using call options, and then looking for protection from the indices plunge at record highs. On Thursday, the VIX jumped to its highest level in nearly 10 weeks, as the S&P 500 .SPX fell 3.5%.

Some investors say the VIX could rally further as the election approaches, especially given that some indicators are showing a tightening race. In betting markets, Democratic candidate Joe Biden’s advantage over President Donald Trump has narrowed significantly, according to RealClearPolitics.

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Indeed, the VXc2 second month Cboe Volatility Index futures, which will expire at the end of October, indicate expectations of more significant market moves during the election period. The gap between second month futures and the VIX widened to a record high earlier this week.

GRAPHIC: Positioning for US election volatility – Here


Recent history shows that election results can have a profound effect on asset prices.

Basically, Trump’s surprise victory triggered sharp swings in the markets on election night 2016, when gold, Mexican peso, and equity futures among assets swung sharply.

Earlier in the year, the British pound GBP = fell to its lowest level against the dollar = US dollar in decades after the UK voted to leave the European Union.

A protracted tally of mailed newsletters could be one of the key catalysts for instability this time around, said Arnim Holzer, EAB Investment Group’s macro and correlation defense strategist.

“The volatility can actually last … longer because of the nature of the electoral process itself, regardless of who wins,” Holzer said.

McDonald, meanwhile, bought December and June calls on the ProShares Ultra VIX Short-Term Futures ETF (UVXY.P), which also grows along with volatility.

He said he had already profited from Thursday’s volatility spike that pushed UVXY up 20% to $ 28.90, and he expects the ETF to rise to $ 40 by the end of the year. By actively trading UVXY as it grows, McDonald believes he can make a $ 1 billion return on his $ 55 million investment. However, if UVXY falls below $ 10 towards the end of the year, MacDonald will lose his remaining December options investment.

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The strategy could pay off, said Henry Schwartz, head of product analytics at Cboe Global Markets, but even with election fears, further spikes in volatility are not inevitable.

Other investors have added hedging to their portfolios. Matt Thompson, managing partner of Chicago-based options firm Thompson Capital Management, has long positions in both US stocks and VIX-linked assets such as Barclays iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX.P). He expects the VIX to rise in the weeks leading up to the election, as it did in 2016.

PHOTO: Road sign in front of the New York Stock Exchange on Wall Street in New York, February 10, 2009 REUTERS / Eric Thayer

Holding assets associated with the VIX for an extended period can be unprofitable given that the index tends to return to its long-term average rather than rising steadily.

But the recent simultaneous rallies in the VIX along with US stocks have made such positions profitable, Thompson said, and he expects them to maintain gains as the election approaches.

“Right now, this is a great scenario for people who are hedging,” he said.

Reporting by April Joyner; Editing by Megan Davis, Ira Iosebashvili and Lisa Shumaker

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Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners



Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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The first Dacia hybrid. “The cheapest hybrid family on the market”



The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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See how Tesla tests its electric Semi truck in the worst-case scenarios



Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.

Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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