US Election is near and there is a way for us to profit from it.

If you think Biden could win the election, you could invest in

•           Renewable energy sector

•           Infrastructure sector

•           Emerging market currencies and equities

If Joe Biden wins, we could expect the Democrats to push through stimulus package and spend more on green projects. Also, Democrats are more likely to embrace global trade, creating a favourable external environment for emerging countries.

If you think Trump will win the election, you could invest in

•           US Dollar

•           US Equities

•           Long Russia Rubble

•           Short the US Treasuries

Basically a replay of its past policy.

The chart shows the net position of retail investors trading the S&P 500 futures. When the line is below 0, it shows that more retail investors are shorting the index. When the line is above 0, it shows that more retail investors are taking a long view on the index.

Retail investors usually lose money in the long run. When retail investors start becoming bullish on the market, it is usually the end of the uptrend. Retail investors are extremely bearish on 12 Mar 2020, a week before a 50% rebound happens. Over the last 2 week, the position of retail investors starts to turn bullish.

If you give further thought, it could mean the rebound of the market is ending and Donald Trump might not win this election.

You could access to the interactive chart, showing the net position of retail investors, fund manager and investment banks here:

DJIA: https://bit.ly/3jHpVu5

S&P 500: https://bit.ly/34EYniu

Nasdaq 100: https://bit.ly/3lhiqKK