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Michael Novogratz says there will be high volatility going into elections

Reported by Cnbc
Sep 21, 2020· 2 min read
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Key Takeaways
  • • Michael Novogratz, Galaxy Digital Founder and CEO, warned of elevated market volatility anticipated in the period leading up to the 2020 U.S. presidential election, addressing broader macroeconomic concerns during a CNBC "Closing Bell" appearance on September 21, 2020.
  • • Galaxy Digital, Novogratz's cryptocurrency and digital asset investment platform, represents institutional-grade exposure to crypto markets during a period characterized by heightened uncertainty and market turbulence.
  • • The timing of Novogratz's volatility warning coincides with significant macroeconomic headwinds, including elevated national debt levels and ongoing monetary policy uncertainty that extend beyond traditional equity markets into alternative asset classes.
Summary
Michael Novogratz, founder and CEO of Galaxy Digital Holdings, appeared on CNBC's "Closing Bell" on September 21, 2020, to discuss prevailing market conditions and anticipate elevated volatility leading into the U.S. presidential election. Novogratz flagged heightened market turbulence as a near-term risk factor, reflecting broader concerns about political uncertainty and its potential impact on asset valuations across multiple market segments.

Galaxy Digital, under Novogratz's leadership, operates as a merchant bank focused on digital asset investment and cryptocurrency-related opportunities. The firm positions itself to capitalize on both bullish and bearish market conditions through long and short exposure strategies in cryptocurrency markets, allowing for tactical positioning amid the anticipated volatility.

Novogratz's commentary reflects the investment community's recognition that election-related uncertainty creates measurable market stress across traditional and alternative asset classes. His remarks underscore the relevance of macroeconomic conditions—particularly national debt dynamics and monetary policy trajectories—to portfolio construction and risk management during politically sensitive periods. For institutional investors and hedge funds, such warnings from prominent alternative asset managers typically signal a need for reassessment of portfolio positioning and hedging strategies ahead of major political events.

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Sources

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AlphaMaven summarised this story from the reporting below. Each link opens the original article.

Cnbc Michael Novogratz says there will be high volatility going into elections