That’s a according to a survey of U.S. institutional equity investors published Tuesday by RBC Capital Markets, which showed a declining share money managers expect President Donald Trump to win reelection next year. A rising expect the Democratic nomination to go to Sen. Elizabeth Warren of Massachusetts.
While the survey showed a majority of smart-money investors growing slightly more optimistic about stock market performance over the coming six to 12 months since RBC’s last survey in June, “one exception — where views actually took a turn for the worse, from a stock market perspective — was politics,” wrote Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets in a research note accompanying the survey results.
Thierry Wizman, strategist at Macquarie, wrote in a Tuesday research note that there are several reasons why a Warren presidency could be bad for markets. Aside from populist tax and regulatory proposals that would require congressional approval, a Warren presidency would likely not relieve markets of the protectionist policies that Trump has instituted unilaterally.
Dream on.