Why investors are unwise to bet on elections

Why investors are unwise to bet on elections

To meet the world’s biggest news junkies, head not to Washington or Westminster. Instead, make your way to a trading floor, where information from every corner of the globe must be parsed the instant it emerges. Whatever the news, from coups to company-earnings reports, it probably affects the price of something. This year, amid a seemingly never-ending series of elections, the addicts are not short of a fix. Electorates representing most of the world’s population are heading to polling booths, and not just market-makers but investors everywhere face the tantalising prospect of trading on the results.

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