Will Joe Biden be good for the markets or a Trump re-election? In a sense, markets do not care much who the president is. Yes, Trump has been in some way favourable to Wall Street because of the tax cuts he delivered. There are fears that a Biden win may revert those benefits. While President Trump continues to claim that a Biden victory will cause “stocks to crash like you’ve never seen before,” market veterans point out to similar predictions about Trump’s own win in 2016, and that of Barack Obama years before. Under both, stocks climbed, and Wall Street did fine. Yet, possible policy change is not what is giving markets nightmares this election season. What is, is the fear of a close verdict with no clear winner and neither side ready to accept the outcome. Markets and big corporates like stability. The 2000 George W. Bush vs Al Gore drama is all too fresh on the minds of investors, who had seen the ripples on the market for weeks. Trade war is an issue, and some say a regime change might ease the situation, something markets would like. The dollar has been in the doldrums, and there are projections that it might rebound if Biden takes the reins, as a little dovish administration is what the US needs to take the pressure off its external trade. Which is why this election has drawn extra attention from markets. As investors worldwide count down to the Voting Day in the US, we bring you the changing pulse from every part of the markets.
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