CNN – 03/04/2020: These days investors feel insecure, and the stock market suffers for it. Now, they have another reason to feel, well, not unsafe, but different. The reason is the new Democrat front-runner Joe Biden.
If we go back for two weeks, everyone would tell you that Bernie Sanders will be a Democrat nominee. But, after a strong Super Tuesday showing the man for the Democrats is Biden. The two candidates went head-on during Super Tuesday, and Biden now has the advantage over Sanders.
Regarding this development, a chief financial economist at MUFG Union Bank Chris Rupkey had this to say: “Stock investors sent up a roar and piled back in overnight because a moderate Democrat had moved back into contention in the race for the White House.”
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Why did this happen? If you ask the market experts, Donald Trump’s chances of reelection are shaken because of coronavirus and President’s inability to deal with it. At the end of the day, Wall Street still wants Trump to win the elections. But, if a democrat nominee manages to win, they would be satisfied only with Joe Biden.
Bernie Sanders’s campaign relies on taxing the rich and putting extensive regulations on Wall Street. He wants the old economy with expensive health care gone. On the other side, you have Biden, who is close to in thinking with the big companies that wouldn’t mind if he was in the office.
Greg Valliere, chief of US policy at AGF investments, released this statement regarding the presidential race: “What a shock for Trump, who was clearly relishing a presidential race against the socialist Sanders. The President will peddle a narrative to Sanders’ supporters that the Democrats’ establishment has rigged the process, but Trump has already begun to shift his focus, mocking Biden’s energy and mental acuity.”
As you can see, everyone has an interest in Presidential race, and Wall Street will sure look after theirs.
Source: cnn.com
Nina Smith 