Kamala Harris replacing Biden has been news that has long been brewing. Over the past weeks, daily calls for Biden to step out of the race has increased, fueled particularly by the poor Trump-Biden debate perfomance, and precipitated by the increased approval ratings post Trump's "shot to fame".
What would this do to the stock market? Personal insights below:
1. Overall positive outlook of the stock market. Biden is out, no matter whether Harris or Trump wins, the outlook looks bright.
Market performed well during Trump's tenure as president, and Americans are likely to remember that. In addition, the fact that he represents the republican party, and that he runs a successful business empire, also lends weight to the argument that the markets are likely to outperform should he win. Of course, there is also the issue of trump linked stocks $Trump Media & Technology(DJT)$ , which is also likely to rise given the increasing possibility that he becomes president.
Now to the issue of Harris. Tough time for her, having to rebuild the shattered democratic party's image is certainly an uphill task. However, this is certainly better than the increasing loss of confidence that the american voting population are starting to have with regards to Biden's leadership.
2. Election year pump.
Looking at historical data, most election years have been well performing years. But this is simply a observation, nothing to suggest that this would remain the case.
3. Improving interest rate environments.
Interest rates is starting to come down as inflation rates are dropping. This bodes well for the overall economy as liquidity improves, thus increasing injections into the stock market.
Overall, bullish outlook. Will remain largely invested in the market, while taking on riskier bets. Also bullish on crypto assets $iShares Bitcoin Trust(IBIT)$ , considering view that the republican candidates have on crypto.
@MillionaireTiger @TigerStars @Daily_Discussion @Tiger_comments
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When they announce who will replace