A Biden Victory And Split Congress Is Best For Stocks, But Here’s What Would Kill Markets After Election Night

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There may not be a clear winner the morning after the election. Nothing would be worse for markets.

ith the 2020 election less than two months away, Wall Street investors are weighing the pros and cons of a Trump versus Biden presidency. Polls show former Vice President Joe Biden holding a lead of 7.3% over President Trump, according to RealClearPolitics, though betting markets suggest a narrower spread.

If Trump wins, Republicans hold the Senate and Democrats remain in control of the House, then markets will likely rally 3% to 5% on “no new news,” predicts wealth management firm Hightower Advisors. Historically, Republican presidents presiding over a split Congress result in an average gain of 5.3% for the S&P 500, with stocks rallying 60% of the time after the election, according to CFRA data going back to 1944.If Biden wins, Democrats take control of the Senate and retain the House then the market will likely see an initial sell-off of between 2% to 5%, according to Hightower.

In the 22 past years when Democrats controlled the executive and legislative branches, the stock market rose an average of 9.8%, rallying 77% of the time after the election, according to CFRA Research. If there is a Democratic sweep, sectors like renewable energy and industrials could benefit from a new focus on infrastructure in Washington, analysts say, while big tech and pharmaceutical companies would likely take a hit from increased government regulation.

 

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In the last 5 years, there has been nothing but one disaster after another, and yet somehow the markets keep going up. The billionaires keep getting richer, while the rest of us suffer. Fuck the markets. They are going to go up no matter what happens in the election.

Dr. Jorgensen for president! Jorgensen4POTUS JorgensenCohen2020

Under normal circumstances

Why mybmc sounds like North Korean army.

Increased Corp tax is great for stonks

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