The upcoming US Presidential Election is expected to significantly impact financial markets. Historically, the volatility index ($VIX) rises by approximately 25% from July to November during election years, primarily due to investors hedging positions with options to manage uncertainty. Financial markets are particularly wary of political risks, including potential impacts on trade and inflation. According to Jeffrey Kleintop, elections pose a risk to these critical economic factors, leading markets to price in more uncertainty ahead of the November election. Investors are already contending with challenges related to inflation, interest rates, and geopolitics, and are bracing for the additional volatility that the presidential campaign may bring.