Americans have already cast their votes, all that remains now is to clarify results definitively. Preliminary results about 85 of the votes counted show a shaky Biden leadership. 449 out of 538 votes counted 236 for Biden vs 213 for Trump.
Interestingly, the markets are reacting very calmly. Four years ago, futures on indices fell about 5 on Donalds sudden strong results but turned to growth after his winning speech. During this time, participants saw with their own eyes that Trump was not the nightmare for the markets that many had expected. It turned out to be the exact opposite becoming a major market driver, reducing taxes and pushing the Fed to ease its policy. Therefore, a defeat for Trump may cause an impulsive and adverse reaction from the markets. However, this is likely to be shortlived.
Bidens presidency promises to be more peaceful for America as a whole, so it can hardly be considered a disaster for the markets. He was Vice President under Obama for a long time, so he is also a relatively known evil even though he promises to raise the taxes. Besides, in the short term, an economic aid package of over 2 trillion can be adopted by Biden very quickly.
Many statements have been made about which sectors of the economy will succeed under Biden, but there is no fear among market participants that President Joe will bring longterm negative effects to the markets. As a result, investors and traders were in a hurry to buy back stock indices this week, after SP500…