As S&P 500 hits a record, investors warn there's likely turbulence ahead tied to the election

Traders wearing masks work, on the first day of in person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 26, 2020.
Brendan McDermid | Reuters

The S&P 500 is heading toward Labor Day at an all-time high, but investors are warning of turbulence tied to the election. Some pros are already starting to hedge for a drop leading up to and after Election Day.

Typically, Labor Day is the time when the markets begin to take presidential polls more seriously. It also comes after each party's convention, and the candidates will have helped themselves, or not, with their performances.

What's different this year is investors are looking for protection that goes beyond the vote because of the concern that there will be no clear winner after the polls close and there could be a long period where it is contested.