Biden’s big lead in the polls could be partly behind market’s drop and may lead to more weakness

Biden’s big lead in the polls could be partly behind market’s drop and may lead to more weakness
Share
  • Many Wall Street analysts are warning their clients that a Biden presidency will not be good for the stock market.
  • The former Vice President and presumptive Democratic nominee has pledged to roll back President Donald Trump’s signature tax cut legislation, which has boosted corporate profits.
  • “This to me is a Biden move,” Jim Cramer said Wednesday as the market sold off. “When I see across the board selling today, that’s Biden … he sounds like another president that you get that is not favorable to capital. If that’s the case, I want to have a little cash.”
  • Looking at data going back to 1951, Bank of America found that when the White House flipped from Republican to Democrat the S&P 500 underperformed over the following three months compared with when a Republican replaced a Democrat in the Oval Office.

Many Wall Street analysts are warning their clients that a Biden presidency will not be good for the stock market. The former Vice President and presumptive Democratic nominee has pledged to roll back President Donald Trump’s signature tax cut legislation, which has boosted corporate profits, and if there is a blue wave in November, Democrats will be able to enact major economic changes that may further affect the market in a negative way, investors fear.

Biden is ahead by 14 points in a major new poll from The New York Times and Siena College, garnering 50% of the vote compared with Trump’s 36%.

Source: CNBC

Submit a Comment