Wealth managers and major stock market players in the Gulf are gearing up for significant volatility in stock and currency markets ahead of the following US election. They are developing strategies to maximise potential gains for their clients, particularly family offices, while mitigating substantial downside risks.
To navigate potential market disruptions, they are focusing on alternative assets such as private equity and real estate. They are implementing advanced options strategies to protect against anticipated declines, restructuring portfolios to include ‘value’ stocks, and maintaining liquidity to respond quickly to market changes.
“The upcoming US presidential election isn’t just another political event; it’s a pivotal moment for global markets,” said Anuj Goel, Senior Executive Officer at Dubai-based Century Private Wealth. “Investors are positioning themselves based on intriguing signals in the options market.”
Executives from wealth management firms in Dubai and India emphasised the need for proactive and strategic approaches. They are not just aiming to weather potential storms but are positioning to capitalise on market shifts.
Currency markets are also a focus, with experts noting that the US dollar’s strong performance could shift dramatically based on the election outcome. For GCC investors, whose currencies are pegged to the dollar, these changes are crucial. Ajay Kedia, a currency market expert, added that geopolitical factors, such as US-China relations, could further complicate currency markets post-election.
Goel stated that while US elections have global implications, there are valuable opportunities in GCC markets. His firm is actively adjusting portfolios and stress-testing investments to manage risks effectively, particularly for GCC clients and family offices.
