Wall Street, Chinese Currency Price in Biden Victory
As polls favor a Biden win, analysts forecast the markets under a President Joe
Wallpaper Flare
• less than 3 min read
The U.S. presidential election is 22 canvassing-call-filled days out. Market watchers are playing Nate Silver to game out the polls...which are currently leaning toward a Biden victory.
- Biden won in 86 out of the 100 outcomes simulated by Silver’s FiveThirtyEight website.
In equities: Wall Street is down with aviators in the Oval, despite initial worries about higher capital gains taxes under a President Joe. JPMorgan strategists are pricing in a temporary drag on stocks in Q4 in the event of a Biden win, followed by a recovery next year.
- Why the optimism? With bonds and cash offering only razor-thin or even negative yields, stocks remain the only viable option for investors to make real cheddar.
- Under a Biden administration, Raymond James forecasts an exodus out of tech stocks and into sectors favored by additional coronavirus stimulus packages.
In currencies: Chinese investors are also bullish on Biden. The onshore yuan rallied the most in 13+ years last week in hopes of a “blue wave” of Democrat victories diminishing trade tensions.
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