How should the &#34;Harris trade&#34; be conducted?
In the past few days, the market has anticipated a decrease in the likelihood of Trump's victory.
Goldman Sachs trader Andrey Alipov believes that the highest returning trade currently is to go long on renewable energy and Asian stocks—previously, the market rushed towards Trump trades, and if Harris makes a comeback, these two types of stocks have significant rebound potential.
Alipov stated that since the market is currently pricing in a low likelihood of a &#34;Democratic victory with a divided government,&#34; sectors in the U.S. stock market that would benefit from a Harris victory are worth paying attention to, including renewable energy, companies facing tariff risks, and healthcare. These sectors may have been priced for a Trump victory and have experienced excessive declines.
Currently, Polymarket prices the likelihood of Trump being elected president at about 66% (this does not mean Trump is leading in polls by 66%, but rather that participants in election betting expect Trump to win 66 out of 100 election simulations), while polling-based models show that the probabilities of victory for both candidates are almost identical.
Historically, once the election results are confirmed, regardless of the winning side, the S&amp;P 500 index typically rises by 4-5% in November and December.
Therefore, Alipov stated that even just for the sake of diversifying holdings that may rebound in the medium to long term, increasing exposure to the &#34;Harris trade&#34; is meaningful.
However, Alipov warned that the U.S. stock market may continue to be volatile for one to two weeks after November 6, as recounts are likely to occur in swing states such as Pennsylvania, Wisconsin, and Michigan.

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Goldman Sachs trader Andrey Alipov believes that the best trade currently is to go long on renewable energy and Asian stocks, as market expectations for a Trump victory have declined. If Harris makes a comeback, these stocks have significant rebound potential. Alipov pointed out that sectors in the U.S. stock market that would benefit from a Harris victory, such as renewable energy and healthcare, may be undervalued due to market overreaction. Although the probability of Trump being elected is 66%, historical data shows that after the election results are confirmed, the S&P 500 typically rises by 4-5%

- The article discusses trading strategies in light of changing market expectations regarding the U.S. election outcome.  
- Goldman Sachs trader Andrey Alipov suggests focusing on renewable energy and Asian stocks, which may rebound if Kamala Harris wins, as these sectors are currently undervalued.  
- Alipov also notes potential volatility in the U.S. stock market following the election due to possible recounts in key swing states.

How to trade "Harris's comeback"?