How to Ride the Potential
Stock Market Tsunami?



by Amanda Harvey

June 8, 2017

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Most involved in the stock market will be waiting with bated breath to see how two huge politically related events will affect the performance of the market today.

The first event which could potentially impact the US stock market is the UK general election which has been called by Prime Minister Theresa May. While strategists do not believe that the results of this election are likely to have any major or long-standing effect on global markets, the event and result could definitely provide enough market noise to create a short-term stir in the market.

If, as is widely expected, May is reelected, the upheaval should be minimal; however any major world political events can still cause ripples in the stock market, as was witnessed following the announcement of Britain’s intention to exit the EU last year.

The impact would be more profound in the unlikely event of a major political turnaround in the UK, namely, the Labour Party winning the election. This unexpected outcome would almost surely bring economic uncertainty and create chaos in the global markets.

Closer to home, and potentially even more influential to market performance, is the testimony today to the US Senate committee of former FBI Director, James Comey, recently fired by President Donald Trump. The drama surrounding the allegations against Trump and his team, and how the proceedings unfold cannot help but have investors and others apprehensive at how the market will respond.

If Trump were impeached, which, by most accounts seems improbable, we would expect significant market turmoil. In the meantime, however, it is anyone’s guess as to the reaction of the market.

So, what is our strategy right now at Stock Options Made Easy? Since there is much that remains to be seen, today we are opting to recommend slightly longer-term option trades, which will provide a better chance of navigating the waves if they become wild, and allow our members to cruise through in the event that the market remains unexpectedly calm.



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