US financial elites were pleased with Donald Trump’s nationalist approach, but recent polls show that Joe Biden is ahead of the incumbent.
On Thursday, July 2, according to Reuters.
Anticipating the victory of the democrat, investors are preparing for a new destabilization of the market. Some are already betting against the dollar and are reducing their investment in US stocks.
A recent Reuters poll showed that Biden is only 8% ahead of Trump, and the alignment could change in 4 months. Nevertheless, as Phil Orlando, chief analyst at Federated Hermes Securities Market, explains, the stock market is assessed differently.
“The market looks at it and says: “ If the elections were held today, Biden would have won, ” the expert said.
Analysts fear that Democrats, having acquired not only the White House, but also both houses of Congress, will ruin Trump’s policies that suit the US financial elites. In particular, corporate tax is expected to increase by 28% under Biden.
Paresh Upadhyaya, director of currency strategy at Amundi Pioneer Investments, notes that as a result of such a decision, the yield of the S&P 500 stock index will decrease by about $ 20 per share. This will lead to the fact that investors refuse to invest in American securities. As a result, the dollar will suffer.