The 'black swan' of the general election rings the alarm bell, and investors may finally begin to take the risks in the second half of the year seriously.

Golden Ten Data on July 4, after the first round of voting in the French parliamentary election sounded the alarm bell for the risks in the second half of the year, stock market investors may finally start to increase some hedging operations. The French market tremor scared some investors, but many remained complacent in the face of high valuations and election risks. Goldman Sachs' proprietary Bull & Bear indicator has started to light up the red light, indicating that market volatility will increase and even a pullback will occur. Strategists recommend hedging portfolio risk or diversification to protect risk-adjusted returns. The decline in volatility comes as equity correlation indicators in the United States and Europe have fallen to their lowest levels in decades. Derivatives strategists at Société Générale said such extremes would last longer and could require "bubble-like conditions". They believe that the upcoming rate cut is likely to trigger a reversal of the situation. The recent steepening of the U.S. Treasury yield curve hints at market fears that the U.S. fiscal situation will deteriorate if Trump wins the November election. Equities, on the other hand, have largely ignored interest rate signals.