Dear Reader,
The 2020 US Presidential Election is scheduled for 3rd of November 2020. If Joseph(Joe) Biden wins, there may be a new economic lockdown, which will crash global stock markets. If Donald Trump wins, US stock market indices will most probably continue their recent rise but mildly.
What is more, Joe Biden wants to raise taxes and increase regulation which will again put downward pressure on stock markets. If Joe Biden, however, decides not to impose lockdowns the market could rise even more than under possible second presidential mandate of Donald Trump. Technology stocks will rise a lot if Joe Biden becomes President of the US and does not impose lockdowns.
Trump's Presidency, however, has been very successful for US stock markets which went rising continuously on his watch. Trump's lower taxes contributed handsomely to US corporations' profits.
Basically, without a lockdown, I forecast US and major global stock indices will continue rising, be it mildly though. If the coronavirus disease explodes though, than both Trump and Biden's hands will be forced and they will institute lockdowns whoever becomes President of the US, which will make DJIA and S&P 500 lose more than 30 %, while the Nasdaq composite could fall more than 40 % from current levels.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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