Just before the US presidential election and the whole world is in turmoil as to who will take the box office. Still, it is the largest and most powerful power in the world today. Will Trump be elected to a second term or will Joe Biden be ousted? I really do not know what the results will be. The polls also do not really give satisfaction – as 4 years ago when the polls predicted a landslide victory for Hillary Clinton and we all know what happened.
And yet, without knowing who will win, given the global situation in the Corona war, I do not see a radical change in market movement just because the incumbent president will win or lose.
The epidemic that came into the world from China is taking full attention and therefore the need to address its consequences is reducing the influence of the president-elect. At least in the short term.
I do not really know where Doland Trump will invest and where Joe Biden will invest but in light of the statements of the two and in light of their political affiliation it is possible to carefully identify which channels and sectors can star and which fade.
If Trump is re-elected – the markets know what has been here for the last 4 years and as you know – the markets love certainty. Alongside this, Trump is not keen on pouring more money into the market and his incentive package, despite its size, is smaller than that of its competitor. And as you can see – the markets are thirsty for a lot of money. Trump is also a proponent of the simple economy, real estate, weapons, tobacco, polluting factories, gambling, oil and more and more.
Trump has no problem colliding with China and achieving better terms of trade for the Americans.
Another sharp change that Trump wants to initiate is the opening of the social networking market for social responsibility and exposure to lawsuits so that companies like Facebook or Twitter will be like any other media outlet.
Biden, on the other hand, represents a sector that advocates change – an innovative economy, pollution reduction, clean energy, technology, reduction in weapons maintenance and more.
In addition, the Democratic Party is pushing for more money to be poured into markets far above the Republican proposal.
As for the trade war – I do not see Biden behaving aggressively towards the Chinese giant.
More on Biden’s Choice – There will be an important and long learning phase about the corona and its effects on American health, the American economy and the world, and the relationship between the United States and the world.
I would cautiously bet that if Trump chooses it will be much easier for him to implement his policies both because of his character and because of the continuity that there is in a consecutive term of president and without a weight in 4 years in the next election.
Beyond that, as long as the corona plague dominates the world there will be a need for aggressive government action and on this issue no matter who is elected.