A new poll of Wall Street’s movers and shakers shows the vast majority believe President Donald Trump will win a second term in 2020.
On the other side of the aisle, Joe Biden was viewed as the most capitalist-friendly Democratic candidate in the race for the White House.
Global investment bank RBC Capital Markets conducted the survey. (CNBC)
“Most expect Trump to win in 2020, but there’s still some nervousness around the event,” Lori Calvasina, RBC’s head of U.S. equity strategy, wrote to clients. Sixty-seven percent “of our March 2019 survey respondents believe that Joe Biden is seen as the most acceptable Democratic candidate by the stock market for the White House. No other candidate got a significant number of votes.”
The survey was conducted after special counsel Robert Mueller gave the results of his investigation to the Justice Department; 141 equity-focused institutional investors were polled.
Presidential elections can have important implications for financial markets based on what traders believe the elected candidate will prioritize while in office. The Dow Jones Industrial Average rallied more than 450 points in the two days following Trump’s election in 2016 and jumped nearly 8 percent into year-end as investors grew confident in future corporate tax reform and big spending.
That’s not to say that the election of a Democratic candidate in 2020 would necessarily put a damper on the equity market.