Wall Street feels bullish on Biden

Discussion in 'Politics' started by FryDaddyJr, Oct 25, 2020.

  1. FryDaddyJr

    FryDaddyJr Well-Known Member

    Oct 11, 2020 - Politics & Policy
    Wall Street feels bullish on Biden
    Mike Allen
    , author of AM
    Joe Biden speaks yesterday at Plumbers Local Union 27 training center in Erie, Pa. Photo: Kevin Lamarque/Reuters

    Joe Biden’s widening lead in polls is providing a bullish cue to investment strategists: Wall Street now sees less chance of a contested election and more chance of a "blue wave" — Democrats taking the House, Senate and White House — and the hearty stimulus that could follow.

    Why it matters: A clear-cut Democratic win would "provide certainty to markets that have been nervous about election risks," Bloomberg reports, citing strategists from Citigroup to JPMorgan Chase.

    • Shares of alternative energy companies, which analysts expect to prosper from policies under a Biden administration, climbed sharply after the Trump-Biden debate, per Reuters.
    The Business cover of Thursday's N.Y. Times had the headline, "Wall Street Takes a Turn For Biden," with the online version: "Wait, Wall Street Is Pro-Biden Now?"

    • "nvestors are of the view that a 'blue wave' victory ... represents the best chance to get another large injection of federal money into an economy that continues to struggle."

    But keep your eye on the ball! Goldman Sachs Portfolio Strategy Research told clients Friday night in the US Weekly Kickstart: "A vaccine is more important than the election, which is more important than 3Q results."

    • "Investors are focused on the implications of a 'blue wave' election. ... However, the vaccine represents a more important factor than the election result for the path of equities. Our assessment of both vaccines and treatments remains optimistic."
  2. JohnHamilton

    JohnHamilton Well-Known Member

    And there was one Wall Street firm that supported McGovern in 1972 despite the fact that had as much chance of getting elected as my neighbor’s dog.

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