These Are Goldman's Favorite Election Trades

With the election approaching, investors are positioning themselves for different outcomes, taking advantage of the optionality given that there will be a binary outcome.

Below, Goldman Sachs trader Faris Mourad shares takeaways based on analysis of market reactions based on different election outcomes.

Our favorite election trades are the Republican policy pair (GSP24REP), expected to move 6.3% (3.4 std dev) in a Trump victory during the week of the election, or the Democratic policy pair (GSP24DEM), if you expected to move 12.2% (5.9 std dev) in a Harris victory.