There’s still no winner in the 2020 race to the White House.
But stocks don’t seem to care.
In fact, as we speak the Dow is up another 488 points, as the NASDAQ rallies 286. The S&P 500 is up another 69, making stocks the biggest winner in the election so far.
All because the government will be immensely divided.
According to CNBC, “Stocks surged in a massive relief rally, as investors viewed the fact Democrats are unlikely to control the Senate as a positive. Without a majority in both houses of Congress, if Democrat Joe Biden wins the tight presidential race, he would be unable push through stiffer regulations and higher taxes.”
Technology and healthcare companies are now seen as less likely to face any new regulations, near-term.
And, as noted by the BBC, “The thinking in the markets … is it looks like it’s divided government regardless of who takes the White House,” said Chris Low, chief economist at FHN Financial. “That means a lot less probability of big sweeping legislative change, big sweeping spending or tax programmes and therefore a lot less uncertainty.”
Without any big headwinds standing in the way, we could see Dow 30,000 this month.
In short, it’s an exciting time to be an investor, as stocks become the biggest winner of this wild 2020 election.
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