The stock market reflects algorithmic trading patterns. If institutional traders can make $50 million in the next two hours, they don’t give a rat’s behind about Trump or the economy.
Actually yesterday’s big drop off is, IMO, a sign the Market expects a Biden win.
Joe loves crony capitalism.
Savers can be cheated by the Federal Reserve year after year.
Why is the stock market so high?
Because there are no other places where you can make much of a return these days. Bonds and banking margins are so tight that you won’t keep up with traditional return models that drive investment.
Of course, multiples of earnings are getting a little out of hand on some of the internet and tech stocks. This is while the returns for normal stocks have been mired for a few years.
Finally, recall that MOST trades on the major exchanges are driven by computers—there is not a human being within a mile of the transaction. They are the biggest, fastest, and most cold blooded trading computers in the history of trading. A computer doesn’t give a shit if selling your company short hurts you and your employees. Some analyst programmer thinks your number should be “X”; and “X” it is.
The markets factor in a lot more than domestic politics. Having said that ... if the dems take all 3 branches i would think the markets would fall.
The U.S. basically works as a fascist system where the functions of government and major corporations have become increasingly indistinguishable. The stock market would thrive under a Biden administration because he’s been bought and owned by Wall Street for his entire adult life.
My personal anecdotal experience:
The NY times fully expected a market crash if Trump won in 2016. I was in private practice with an Engineering firm and literally the day after the election we had clients coming in that had been hesitant about their projects afraid that Hillary would tank the economy. They came in and told us to hit the ground running and we never looked back.
Now the inverse is happening where we have developers telling us to hurry because they want get their projects done in case Biden wins and they get shut down.
If you are a middle class or rich investor in Italy, Saudi Arabia, the UK, Hong Kong or Spain, which stock market would you put your savings in? Remember there are Covid-19 riots in Italy, the Middle could devolve into war, Brexit is still being figured out, people in Hong Kong want to leave, and Spain has just allowed local governments to restrict movement and impose Covid-19 shut downs until April 2021.
Countries around the world are spending money they don't have. That will cause worldwide inflation. The best investments during inflation are commodities, land, and yes stocks. In other countries there is the much higher risk of confiscation of assets.