Donald Trump’s campaign has been nothing if not unconventional—and investors hate it. Wall Street has long regarded Trump as an unknown quantity who would boost uncertainty. As a result, the S&P tends to rise when the candidates’ polling numbers fall.
But that’s not the only way Trump is impacting markets. Take the peso, which David Bloom, global head of currency strategy at HSBC, has called the “Trump thermometer.” The better Trump is doing, the weaker the peso trades against he dollar—driven down on fears that a President Trump would cut off trade and immigration to the country.
Yet despite market jitters, the election isn’t all bad news. An analysis by Charles Schwab indicated that during election years, the market rose most of the time. That’s no reason for complacency, but it’s probably not time to put your money in your mattress either.