President Donald Trump has tried to portray himself as an economic savior, and warned that Joe Biden winning the election would be a disaster for jobs and businesses.
But according to Politico, Wall Street executives don't agree. Many of them are now actively rooting for Democrats to sweep the 2020 election — because Republicans have failed to deliver crucial stimulus.
"Traders in recent weeks have been piling into bets that a 'blue wave' election, in which Democrats also seize the Senate, will produce an economy-juicing blast of fresh fiscal stimulus of $3 trillion or more that carries the U.S. past the coronavirus crisis and into a more normal environment for markets," reported Ben White. "Far from panicking at the prospect of a Biden win, Wall Street CEOs, traders and investment managers now mostly say they would be fine with a change in the White House that reduces the Trump noise, lowers the threat of further trade wars and ensures a continuation of the government spending they’ve seen in recent years."
According to the report, Wall Street traders still like the idea of Trump winning, as it would mean a continuation of their preferred tax and regulatory policy. But they are willing to give that up, at least in the short term, for an all-Democratic government that would provide economic relief to the pandemic.
“The market very much believes that Biden is going to win and the Senate is going to tip to Democrats,” said one Wall Street CEO to Politico. “And the assumption is that we are going to have a very significant increase in stimulus very quickly and that’s very positive for markets. But the fact is there is still a tremendous amount of uncertainty around the outcome of the election and when stimulus might actually come, if it ever does.”