Tags: 2020 Elections | contrarian | bet | trump upset | biden | top risk

Contrarian Who Bet on Trump Upset Now Sees Biden as Top Risk

Contrarian Who Bet on Trump Upset Now Sees Biden as Top Risk
(AP)

Wednesday, 04 November 2020 07:57 AM

James Athey, a money manager at Aberdeen Standard Investments, was one of the few betting against market predictions of a comfortable U.S. election win for Joe Biden and a likely Democrat sweep of the Senate.

Now, as votes are being counted and with the outcome looking like a protracted affair, Athey is doubling down on buying safer assets.

He is keeping overweight holdings in U.S. Treasuries and has boosted a long position in the Japanese yen, betting the uncertainty won’t be resolved soon.

The main risk for markets is that Biden wins presidency while Republicans hold onto the senate, creating a policy deadlock, he said.

“A Biden win is probably worse for risk assets than a Trump win,” he said in emailed comments. “We are not going to get presidential clarity for a good while yet. That will keep risk nervous.”

Athey didn’t buy into the market narrative of recent weeks that Trump’s chances of winning were little more than 10%, and weighted his portfolio accordingly. While other investors were bracing for a selloff in Treasuries on the prospect of more fiscal stimulus following a Biden win, Athey went the other way and bought the securities in the seven- to 10-year segment of the yield curve.

U.S. 10-year bonds surged Wednesday, with yields falling 10 basis points to 0.80%. Athey said that he added to his long position on Australian bonds Wednesday. The dollar reversed gains versus the yen to trade slightly lower at 104.33.

© Copyright 2021 Bloomberg News. All rights reserved.


   
1Like our page
2Share
InvestingAnalysis
James Athey, a money manager at Aberdeen Standard Investments, was one of the few betting against market predictions of a comfortable U.S. election win for Joe Biden and a likely Democrat sweep of the Senate.
contrarian, bet, trump upset, biden, top risk
245
2020-57-04
Wednesday, 04 November 2020 07:57 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved