Tips for traders, 6 May 2021
Joe Biden’s recent announcement of plans to increase tax on individuals and corporations has shocked various shareholders in the US stock market. This is not good for sentiment because it might make people less likely to invest.
As a result of this, the VIX has gone back up from its low at 15.38. Markets seem to be aware of potential risks in the future. At the same time, some indices have reached all-time highs, like the Dow Jones Industrial Average and S&P 500.
In these conditions, staying alert and monitoring open positions carefully can make sense. A swift, unexpected decision by the American government or the Fed might have a significant negative effect on positions for shares and indices.