Emanuel: Market Not Reflecting Uncertain Political Shift

The video discusses the political shifts within the GOP, highlighting the unique nature of Trump's candidacy. It explores the impact of these shifts on market uncertainty and the use of derivatives for hedging. The discussion extends to global political uncertainties, comparing the US presidential election with European benchmarks. The video concludes with strategies for managing market risks through derivatives, particularly in the context of currency movements like the dollar-peso.

What is highlighted as unusual about Mr. Trump's candidacy in the political landscape?

• He is the first candidate to use social media.

• His candidacy is seen as untenable by some former GOP nominees.

• He is considered a normal candidate.

• He has unanimous support from former GOP nominees.

What strategy is suggested for institutional managers to handle market uncertainty?

• Avoiding any market activity

• Buying more stocks

• Using derivatives to hedge gains

• Investing in real estate

What is the market's typical response in a low interest rate and low volatility world?

• High concern about political events

• Normal response with little concern until the last moment

• Ignoring all political events

• Immediate panic and sell-off

How does the market typically react to major political events like the UK referendum?

• It never reacts to political events.

• It reacts several months in advance.

• It shows concern only a week before the event.

• It reacts only after the event has occurred.

What currency strategy is discussed in relation to the U.S. presidential election?

• Investing in the Euro

• Ignoring currency movements

• Using derivatives to manage dollar-peso movements

• Focusing solely on domestic markets