If you take a look at the inventory market to find out who will be the next president, Friday’s finale is a telling sign.
The S-Index
Stovall’s “presidential preacher” that when the S
Is the inventory market in favor of Trump or Biden?: The answer surprises you
Markets: Can the inventory market wait if Joe Biden will be the next president or if Donald Trump will win a temporary mandate?
When the S
On Friday, the S
Polls show democratic presidential candidate Joe Biden is leading Trump across the country, his merit has fallen in recent weeks in primary transition states, adding Michigan.
“The ” presidential predictor “implies, but guarantees, a victory of Biden, ” said Stovall in an e.
The Real Clear Politics average of primary polls, Biden’s national leadership at 6. 5 percentage points on Monday.
Some analysts say the stock market cares more about which party controls Congress than which party the White House wins. Stocks have sometimes thrived in a legislative impasse in Washington, and a divided Congress has been the most productive situation for investors.
This suggests that markets would possibly prefer the force department in November, as it would be more difficult for lawmakers to oppose existing policy measures, according to experts.
The inventory market works more productively when the outgoing party wins an election. One explanation for why the prestige quo is maintained, indicating to investors that the US economy is not going to be able to do so. But it’s not the first time It is maintained well enough that the outgoing operator does not get rid of its charge. analysts say.
Markets don’t like uncertainty. Investor considerations include what happens not only if Biden wins, but also if Democrats return to the Senate. A democratic sweep can simply increase the threat of additional regulation and possible tax accumulation, some experts say. .
Conventional wisdom would recommend that a democratic sweep would be negative for markets, especially for highly regulated industries, however, additional economic suffering may require more Washington taxes, according to Raymond James analysts. This can help stimulate economic growth.