28 December 2023: Wealth Product Ideas
Capitalizing on US Election Market Dynamics
- Market consensus hints at a potential Biden-Trump electoral rematch, but the political scene is fluid, with the possibility of rapid changes. Relying on historical stock market behavior during elections can offer investors a more solid foundation for decision-making.
- Election years typically see a positive uptick in the performance of U.S. stocks and bonds, with the S&P 500 often ending higher, as evidenced by gains in 19 out of the last 23 election years.
- Investors can seek to benefit from the expected market shifts during U.S. election cycles, especially the 2024 presidential race, while remaining mindful of the underlying unpredictability of these patterns through a 100% Minimum Redemption Digital Coupon Note with SPX as underlying.
FCN Quotes
Note: Pricing provided is indicative only. For updated pricing, please contact us directly.
Payout Conditions:
- The product guarantees a 100% minimum redemption of the principal amount (unless issuer defaults).
- Should the coupon threshold of 110% be met or exceeded, investors are entitled to a Bonus Coupon rate of 8.6%.
- In scenarios where the closing price of the SPX falls short of the 110% coupon barrier, investors will still receive a full return of their invested capital, as the minimum redemption level is set at 100%.
- This structure provides investors with the opportunity to participate in the prospective gains of the SPX while cushioning against potential losses.
(Source: Bloomberg)
