Ultimately tight, the outcome of the presidential election in the United States is not such a bad scenario for the equity markets. Barring riots or urban violence, the indices should continue to hold up well. Stability allows you to hope for a very correct gain in a short time.
The worst is never certain. Presented by most experts as the scenario to be avoided at all costs, the election of a short lead of the next American president (a priori Biden) without a majority in Congress since the Senate should remain “republican” is ultimately not such a bad thing. Why? Quite simply because the Democratic candidate will not have the means to carry out his program, in particular the increase in corporate taxes and the increase in taxes on capital gains on the stock market. The regulation of the banking sector can not be tightened either and the dominant positions of Gafam (Google, Apple, Facebook, Amazon and Microsoft) no more controlled. Ditto in the health sector, where drug prices should not fall in order to provide access to health care to the greatest number of Americans. With the election of Biden, the geopolitical climate will be calmer, especially in terms of trade relations with China, which should benefit global growth. Conversely, the political blockage with the Senate with a Republican majority will not facilitate the adoption of a stimulus plan as important as envisaged by the Democrats (2000 billion dollars) but nothing says that the new president will not succeed. not for his purposes. Finally, the Federal Reserve will continue to ensure that the economy and financial markets are supported. This is why we believe that the global equity indices should continue to rise. Unless there is a social crisis in the United States.
Reimbursed at 10 euros under condition
To bet on the CAC 40 index, it is thus possible to take a stability issued by Societe Generale (code: LU2088519850) with a deadline set on November 20, 2020 and two limits located at 4500 points for the lowest and at 5400 points for the highest. The principle of the certificate is very simple. It will be reimbursed at maturity at 10 euros. Given its buy price, it is likely to deliver a 15.1% gain in just 2 weeks. But watch out for the risk profile. This is very high since a stability can lose all of its value in the event that the CAC 40 index exits from the bottom or the top of the range of fluctuations defined by the two limits (4500/5400 points ).
Our advice: buy a stability CAC40 issued by Société Générale (code: LU2088519850); deadline: November 20, 2020; terminals: 4500/5400 points; price: 8.69 euros; amount: 1