Why do many economists say the stock market will do better if Trump wins than if Biden wins?
- MichaelLv 71 month agoFavourite answer
Biden actively campaigning to put an entire industrial sector out of business might have something to do with it.......
- Anonymous1 month ago
They don't. They just sent him an open letter saying the opposite.
- AlLv 61 month ago
There are a few factors why Wall Street does well with Trump, he is tax friendly and regulation friendly, so he helps businesses right out of the gate which translates to more available jobs, that is a positive vibe for Wall Street when people are working, that means consumption follows....... Biden want's to over tax big business, but understand, there is a trickle down effect by doing that which results in higher prices for goods and services with fewer jobs and fewer consumers.... consumption is the engine of the economy, only moderate minded people understand this and lean republican, even if they are democrats, they know republican leadership drives the winning formula when were not fighting wars, but producing goods in America.
- Const. KingLv 71 month ago
Trump makes the country prosper. Biden hasn't accomplished 1 thing in 47 years of politics so why should he start now. If you were a hiring manager would you rehire an employee that had worked for the firm for 47 years and had no accomplishments????
The sad thing is he was paid top dollar to do nothing & steal.
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- Anonymous1 month ago
Because "All Politics is Local".
And there are few things more 'Local' than what any particular person &/or economic care concern or give-o-dern has in ones wallet and what one can confidently forecast 'Will' have in ones wallet in the future.
Biden wants to eliminate buttloads of revenue & job generating cares concerns & give-o-derns and piss away Zillions of revenue investing in idealistic arguably unrealistic projections of things his political factions like.
While on the other hand Mr T wants to preserve all revenue generating cares, concerns & give-o-derns and even invest in More of them generating even more jobs & revenues instead of pissing away Zillions that the current economy doesn't even have or will have in any realistically forecastable future otherwise.
Thus, since stock & economic forecasters are all about what's in the "Wallet" & what's likely to be in it in any realistically forecastable future and Not 'Projections' of grandiose Wishlist that just 'cost' allot of revenues & don't generate any, the The stock & economic forecasters believe Mr T is the more economically practical choice.
- Katz22Lv 71 month ago
13 Nobel Prize economists back Biden's plan... that is a bigly endorsement.
- AnonymousLv 61 month ago
Based on What's already happened in the market we Know what a Biden Presidency looks like:
If you talk to hedgefund managers who have AI designated to extrapolate who's likely to be our next President to decide what are good investments and anyone actively investing that know where to get their information. They will tell you for the last few months the stock market has been betting like Biden will win the election. I saw this trend starting the summer.
Before Trump caught Co-Vid and Trump tweeted that he told his people to stop stimulus talks so they can focus on installing a new SCJ. The stocks were doing really well it mostly hinged on the assumption that we were going to get a stimulus deal. Now, we're sure there isn't going to be a stimulus deal before the election. Some of us don't want to invest because we fear the longer it takes to get a stimulus deal it's more of a guarantee we're going to fall into another recession. The longer it takes to get that aid we think the worse it'll take to recover. This is coming from Yahoo finance, Bloomberg, Marketwatch, Benzinga.
Prior to the hopes of stimulus what you were seeing in the market was the market assuming we'd see a Biden Presidency. This is why we saw oil drop and energy companies take off. Some mornings I'd invest 2.3k and make $600 from solar energy stock like VVPR. The market bets based on what they think will happen 6 months to a year out. There you have it, the stock market already factored in Biden months ago and the stocks were doing great. We have the fall off now after we lost hopes of a pre-election stimulus deal.
As an investor:
- The tax cuts the GOP & Trump has done in 2018 for Corporations and Capital Gain made the stock market rise. Tax Cuts impact the earnings report for Corporations, that drew in more fundamental analysts. Cuts to the Capital Gains help people hold onto more of their profits off the stock market.
-We're also keeping track of the value of the dollar and how that's been impacting the stock market and its place in the global setting. The dollar's been devaluing. The stimulus will devalue the dollar due to inflation and it'll cause the stock market prices to go up.
-Ceos from chase and other notable people on Wallstreet said we're going to be doing better with Biden as President because things are more predictable. That was true when I was playing the stocks under Obama, it was predictable and I was making steady gains. The volatility of Trump's stock market, sometimes I lose as much as I gain. It's unpredictable, uncertain and harder to make the calls I normally would With my friends who also invest, Trumps been messing up their investments also where it's not just stock but also bonds.
But we're sure, Biden won't be doing crash tweets to crash out stock like Trump's been messing with ours. The volatility is great for profitability but the Trump tweets make it unmanageable.
From a non-investor POV.
Trump approved massive tax cuts to capital gains and corporations were 2 Trillion dollars that weren't balanced in the budget and it resulted in our federal deficit to skyrocket to nearly a trillion-dollars.
Let me put the deficit in context. The National debt was the GOP's sticking point to Obama that rallied Fiscal Republican voters behind them because Obama racked up a record-breaking $1.4 trillion dollar federal deficit. When Obama was able to reduce the deficit to $484 billion dollars, Obama and our government said, that was manageable. Obama still took a lot of criticism if we were taking on more programs to make that rise, understandably because we do not want an out of control deficit.
Trump was handed a 589 billion dollar deficit that he ballooned to 984 Billion dollars without being in economic trouble, when things were good economically. Currently, we've hit a record-breaking 3.1 Trillion-dollar deficit. We're going to need to spend more on a stimulus package to avoid a difficult economic recovery. Jeremy Powell was talked by Congress to help save our economy. He said the federal reserve isn't supposed to be involved but we're in an emergency and we're using emergency tools now like artificially inducing inflation. We're seeing a possible dollar collapse by the end of 2021. Jeremy Powell said even with his current emergency tools the Fed alone cannot save our economy. We need the help of Congress to pass the stimulus otherwise we're facing a very difficult recovery.
If we want to be responsible and get ahold of our deficit to avoid being own by China for the debt we need to at least move the taxes back to where they were for Corporations and Capital Gains. That will momentarily slow down our economy but we're leveraging that because of out of control debt our government has made. You me, working-class and our children, probably grandchild will be paying this off while rich people use their tax loopholes to pay less than we do in tax on top of the massive tax cuts given to them by Mitch McConnell and Trump. If the capital gains taxes go back pre-Trump, there's still a tax loophole to avoid paying those taxes by trading under your Roth IRA account. If you withdraw early I think you pay a 10% penalty which would be less than even the current tax on a stock you sell.
Currently, the market isn't pricing in Biden's new tax plan because we're not sure if he could pass it and it'll take 3 years before it comes into play. The stock market will take a momentary hit when those taxes pass and it will slow moment for economic growth but we do need to start controlling the astronomical debt we have now and are about to incur an additional 2 trillion dollar stimulus package. People who don't know what they're talking about when they are saying let's talk about the deficit after the virus is over. Those people are mindless drones. That isn't how you're supposed to borrow money. Not as an individual or a business. You're always supposed to have a plan for how that money will be paid back. I think it is unacceptable to say don't worry about balancing our 3.1 trillion dollar debt, we have other things to worry about. The debt needs to be worked on no matter what is going on.
Also note, the stock market is an indicator of perception. This is why Tesla and the rest of the tech sector are overvalued beyond their EPS. It's all those retail investors who don't know what they're doing making the market really volatile. Those people aren't rich but people are profiting off them. It's simply rearranging money among losers and winners who play the market. It does not add to the economy in any meaningful way. It does not create jobs. Our economy is successful based on consumption. People need to constantly be spending for the economy to do well. Trying to understand the stocks or economy under political news is a waste of time that will only give you disinformation to help whatever political agenda that media is trying to push or is funded by. Political news is very divisive and misleading. Never take financial advice from political news. Look for financial news that has politics in the background because the policies dictate the market but hopefully you're finding information that doesn't care about as much about politics. By doing so you'll understand the market, economy, and finances better. You should have your own opinions that happen to be political but political news is nothing but a waste of time. There isn't a single political news junkie that knows what they're talking about in terms of the economy or the stock market. IDC if they're Liberal or Conservative. If they aren't profiting off playing the stocks but they're talking like they do because they follow political news, they're stupid. Political news junkies are all rhetoric and have nothing of substance to say. The outcome of their research is political propaganda without understanding that's what they're pushing. If you're looking at the news, research knowing what your goal or purpose is because political news junkies just get hijacked because they were emotionally manipulated like a chump. If you're reading the news, know what your goal is and don't get lost.
- Anonymous1 month ago
Biden has clearly stated he will raise taxes on both individuals and business which will slow the economy. Even if he doesn’t get these tax hikes through Congress, investors will react to his intentions.
- Mr. SmartypantsLv 71 month ago
Every time a Democrat wins back the presidency, Republicans predict a stock market crash. But look at history back to 1929 and what you see is that stock market crashes and recessions all came under REPUBLICAN presidents.
Back in the 80s, Reagan gave us the longest 'recovery' ever, the longest continuous period of stock market rise. The Republicans wouldn't let us forget it! Then there was a mild recession in Reagan's last year, and another under GHW Bush. Clinton broke Reagan's record for the longest recovery, and Obama broke Clinton's record.
- 1 month ago
Biden is openly hostile to American business, especially the energy sector.
- Anonymous1 month ago
rudy giuliani is not an economist