A surging stock market isn’t helping Trump

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As Biden's lead over Trump builds, investors seem to be saying fine with us.

For most of Donald Trump’s presidency, a buoyant stock market has helped inoculate Trump from scandal and controversy. That pattern is breaking down.

Trump is facing the toughest opposition of his presidency amid the coronavirus pandemic, attendant recession and widespread civil rights rallies following the May 25 killing of George Floyd in Minneapolis. A stunning 80% of Americans think the country is “out of control,” which is obviously bad for Trump because more than anybody else, he’s the face of government.

Perhaps most worrisome for Trump, he’s also facing new opposition from within his own party, which he has all but, well, dominated up till now. GOP stalwarts such as former president George W. Bush, former Florida Gov. Jeb Bush, former Secretary of State Colin Powell, Sen. Mitt Romney of Utah and Sen. Lisa Murkowski of Alaska have all said they won’t vote for Trump in November.

The long view would obviously include potential policy changes if Biden wins, especially if control of the Senate flips to Democrats. Biden favors a higher corporate tax rate, expanded Medicare, and other programs that would generally involve more government spending and more tax revenue. Many analysts think the market needs to adjust—downward—to account for the smaller profits a Biden presidency might bring.

 

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Yet.

Umm ok.

Joe Biden isn’t helping himself...

It will. Too early right now.

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