Stock Market, Volatility
TOPICS: Stock Market, VolatilitySUMMARY: Initial enthusiasm of the stock market has simmered down and investors are being morecautious and positioning themselves to hold against potential resurgence in volatility by increasing theircash holdings. Bank of America Merrill Lynch survey reports that global fund managers increased theircash holdings to 5.1% from 4.8% in December. It is also noted that historically speaking, there has been a median decline of 0.7% of post-election trades in the first month a new president has been sworn in.However, some investors have anxiety over new policies that are different from the Obama administration and the unpredictability of President Trump.1. What are some political risks involved with the markets?2. What are some drivers of volatility in the equity markets?3. How do you think elections in France and Germany impact our markets?