Nov 9, 2020
Biden Wins Presidency: What It Means for The Markets
The long wait is over - Joe Biden is now the president of the United States of America!
After 4 tense days, Biden was proclaimed President on Saturday after winning the key state of Pennsylvania and getting 279 electoral votes. With Trump out, what should we expect from the markets?
Biden has been strongly advocating for environmental policies throughout his campaign run. He even plans his own version of a “Green New Deal,” which Democrat senators are proposing in the congress. He also promises to undo Trump’s move to opt out of the Paris Climate Accords.
Stocks under the alternative energy sector like First Solar and Tesla could heavily benefit from a Biden regime.
Everyone is preparing for the possible “Blue Wave” where Democrats are in control of both the executive and legislative branches. Things could end up sideways for major indices if the Democrats do not get control of the Congress.
Although we could see a less bloody trade war with China, Biden’s policies to raise taxes and minimum wage will likely reduce the chances of big gains in major indices due to some pushback from a Republican-led senate.
Since election day, S&P500, Dow Jones, and NASDAQ100 gained consistently by 7.38%, 6.09%, and 10.77%, respectively. We’ll see how they will go from here.
The fate of the Congress will rest on the battle in Georgia come January.
Trump is not yet done for. He plans to take the election results to the Supreme Court to overturn the outcome. Watch out for more volatility ahead!
Read more about other markets on our blog: https://blog.simplefx.com/2020/11/09/biden-wins-presidency-what-it-means-for-the-markets/
