In this tumultuous and divisive election year, it’s comforting for investors to know that — based on 50 years of Bloomberg data — elections are generally reliable for the stock market.
Though the Turkish economy suffered what Turkish Deputy Prime Minister Mehmet Simsek termed a “knee-jerk reaction” in the immediate wake of an unsuccessful and short-lived coup attempt, investors still fear for the stability of the market.
To many investors, buying government debt seems like the smart move, because they stand to lose less than they expect to otherwise. If this trend continues, and bond prices continue to climb, investors could actually earn money by selling their bonds amongst themselves for a higher price than what they paid.
The shift from active to passive investment management may be one of this past decade’s most significant financial trends, according to a Bloomberg View article.