As the U.S. presidential election approaches in early November, traders should brace for increased volatility, particularly in the lead-up to the event. Historical trends indicate a strong inverse relationship between the VIX volatility index and the S&P 500, with volatility typically rising before elections and declining afterward, often benefiting the stock market. Risk management strategies, such as shorting the VIX while going long on the S&P, can help investors navigate potential market surprises.
