A futures strategy that may be in play here is long or short options on the equity indexes or gold

Without economic growth tax revenue for the Federal government will not increase and we will continue to run a deficit and add to our debt.

Chicago, IL (prHWY.com) November 21, 2012 - Less than a week until the presidential election and commodity trading companies awaiting the uncertainty. Some traders believe their commodity strategy will be affected by the election and who controls the majority or all of Washington. Will the Republicans retain the House and pick up the White House? A futures strategy that may be in play here is long or short options on the equity indexes or gold. Gold has held a steady high due to uncertainty with the national debt and job creation. With Romney taking the white House and having a majority in congress the republicans will be able to control almost every branch. It is likely that democrats will still control the Senate but only having to get a few democrats to work with republicans should not be a problem. Mitt Romney was able to work in a bipartisan matter as Governor of Massachusetts so I am confident he will be able to do so again.

With republicans gaining control I believe it will restore confidence in our markets and that we have the ability to reduce our national debt. Historically when democrats win the presidential election the stock market goes down the day after. When republicans win the presidential election the stock market goes up. Based on this simple historical data one futures strategy would be to trade the indexes. A commodity strategy that I think would be effective if Mitt Romney becomes the next President of the United Stateswould be to short gold. I believe that if Mitt Romney wins he can put policies in place to remove Obama Care and deal with our deficit and debt in a timely matter. Even if he only accomplishes one or two things in his first few months by succeeding he will restore confidence in America and our currency. I think he could bring some calm to the markets which would decrease the price of gold.

These are all sorts of scenarios that commodity trading companies are going to speculate on in the next week and probably the first few months of a Mitt Romney presidency. Average Americans are not going to go out and speculate in the futures market in regards to the effects the next commander in chief may have on the prices of gold or the value of the Dow Jones Industrial. Americans who have money in an investment portfolio are not watching it every day researching the companies they have through mutual funds. They don't have the time or experience. What is available for investors with capital to gain access to the futures market is managed futures. Managed futures are futures accounts traded by professional money managers called commodity trading advisors or CTAs. CTAs allow common and unsophisticated investors who have the necessary capital the ability to diversify their portfolio through the futures market. The futures markets have shown to be historically non-correlated to the stock and bond markets and can provide profits during stock market declines. They also provide the investor with a track record and full disclosure document outlining a specific strategy and fees. CTA's do not have access to client funds just the ability to place trades on their behalf.

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Tag Words: futures strategy, commodity strategy

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