Tuesday, July 16, 2019

Next US President- How will Financial Markets Fare?

The 2020 US election is coming and I am sure this is important as it will bring about effects to the financial markets.

As much as Trump is controversial, his policies have been beneficial to the US market with the tax cuts that were recently implemented, which brought an influx of corporate money into the markets. He might be lacking in other moral areas such as 'climate change being a hoax' and his womanizing but undoubtedly, his tax cut policies have benefited the stock market. The only risk he is bringing to the US markets is his constant threat of trade wars and his volatility of positions on certain pertinent issues.

Other popular politicians include Bernie Sanders, who is a 'socialist', and advocates for more socialist policies such as Medicare for All and minimum wage. He even proposes high taxes on Wall Street to cover the rising student debt. Morally, I will agree with his policies, but from a financial market perspective, if he is elected, I believe the market will spiral downward due to higher taxes imposed.

I am not too sure about the other candidates, but I believe Joe Biden will just be a mere continuation of the Obama days (which probably means less trade wars) which is good. I am not sure if Bernie will ensue trade wars with China though.

What do you all think?

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