Opinion: Why Biden’s popularity could stop stock market bulls in their tracks

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OPINION: Biden's popularity could actually be bad for the stock market, Mark Hulbert writes. That's because when approval ratings are lower, the stock market is less vulnerable to being disappointed.

Might Joe Biden’s high approval rating be too high? The answer from an investment perspective appears to be “yes.” Ned Davis Research has found that, when properly interpreted, a president’s approval rating is a good contrarian indicator. That means the stock market tends to underperform when that rating is particularly high.

Gallup won’t calculate a formal Presidential approval rating until Biden is inaugurated on Jan. 20. Meantime, the approval of his transition is the best we can go on. The comparable approval rating for Trump’s transition four years ago was 48%. It’s not just Monday-morning quarterbacking for me to point out that Trump’s low approval rating boded well for stocks. I devoted a column to this subject four years ago, with the headline: “Why Trump’s widespread unpopularity might be good for stocks.”

 

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Stock market is always under influence of billionaires they can turn it in any way they want, if they work on it together. Politics won't do much about it, because this game is about money and who have more decides for those who have less

Another so called expert who has zero knowledge of what market will do. LISTEN UP FOLKS. NOT ANY HUMAN BEING OR AI OR MACHINE KNOWS WHAT STOCK MARKET WILL DO. STOP LISTENING TO THESE IFIOTS AND DO UR OWN HOMEWORK.

Pretty sure the MAJORITY of the voting population HATES this assclown. We don’t have to worry about that. DemocratsAreDestroyingAmerica

Clinton was like and the stock did very well...

Plus 10% for the big guy

I predict a great big bear market; not cuz he’s liked, but because democratic policies drive economies into the ground.

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No. It’s not his popularity that will tank the market. But good job trying to lower the bar before he does it.

No, not at all, the Stock Market does better when the potus has had the $CEO Experience as a part of his resume and not a career politician who is used to privilege and who has signed the payroll checks of the companies employees who he his responsible for their financial health

Stock markets do better with PREDICTABLE STABLE leadership not deranged orange lunatic in power. Stock markets do better wivaccine and vaccinations! The Chinese lost 400000 consumers due to covid, what were they thinking BAD Xi China

Mind you 75mil people voted for Trump...and he's less popular?..

Get your excuses in ahead of time

Popularity only on Twitter

Who gave these boomers a twitter account... stocks only go up.

Because you are you know that Donnie’s crap response and the feds going brrr brrr destroyed our economy. Then when it comes crashing down everyone is going to blame the dems “controlling” the government. Buckle up kids, the show ain’t over yet.

Hmmm I’m sure it has nothing to do with selfish dimwits raising corporate EPS by cutting regulations that then pisses off people who want the planet to be remotely livable for at least a couple more generations. Anndd breath 😉

What are you looking at? US30 SHORT S&P500 SHORT

Late

If Hulbert's hypothesis is correct and there is an inverse relationship between market performance and POTUS approval, I need to get all my money into the DOW now!

Hey FUDsters, the American economy and the stocks go UP long term. ALL. THE. TIME

We hate Biden as much as we hate Trump.

yes we promise not to blame his puppet masters communist agenda for the imminent economic collapse. we just adore sleepy, so captivating. 81M!!

Saw this yesterday...1st time a majority saw red, most notably after 3pm when we heard such negativity, dark winter, mess

Popular? You Gotta be kidding! He's a dinosaur.

Loss money

Who is he popular with? No one voted 'for' Biden. Those who voted Biden would have voted for a potato if it was running against Trump.

Stimuli checks are not enough. Wall Street is like a drunken sailor. Needs more and more doping.

So ridiculous

So wrong. Try again.

Absolutely nothing they can't spin...

His high rates opposes a discredited Trump with a shameful end right now. When taxes begin to rise an average people realizes they are paying in other ways the benefits they receive, this scenario will be getting balanced....

This kind of thing is why many people loathe Wall Street with all of their being.

When you steal an election. is compromised by China, has a socialist agenda, signs of dementia and is known by pedo Biden: all goes bad.

1 trillion dollars pumped into the economy will only do on thing for the economy. And when we put covid behind us the market will continue to rise.

The stock market is entirely controlled by the Federal Reserve. The president doesn’t matter one bit. And you cannot say you’re popular if you need to raise an army, and erect fences, to protect your inauguration.

Tying these two metrics together in a direct way is not quite accurate. Still, shouldn't the improved confidence in the actual economy and consumer spending drive the market higher simply due to cash influx in the next 6 months compared to what it is now?

MW stick to facts and reporting, not mumbo-jumbo stuff!

What a stupid argument. The stock market will do better with great leadership and intelligent people in charge. Not the opposite. I'm attacking the idea not the person. 🍋

Right, So using that logic, an extremely unpopular leader like say Mussolini or Stalin would be good for Stonks yeah?

Has nothing to do with his government agenda to increase taxes and regulations?

Huh? The stock market will survive. Check president Obama’s approval rating. The stock market made new all time highs. Fact, not opinion.

So if he has bad popularity, how he won the election? Hmmmmm.

This explains how it all works my finance friends...

Lmao

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