The 2020 Presidential election will be a historic event and it is important to understand how market prices will react to all the hype and speculation that will surround this upcoming election. While many people are already making their choices based on the early chatter surrounding each candidate, there will still be many markets left unevaluated and many markets which will actually move against the incumbent, if they have not already done so.
In past Presidential elections, there was usually a slight swing in markets between the candidate that was chosen and the incumbent. However, in this particular case, the market is moving against the incumbent with every announcement made by a new candidate that they will be joining the race, as well as every move made by an incumbent that is seeking to run away from their past remarks and policies. The race for the White House could very well come down to which party can capitalize on their voters and make them believe that the only remaining candidate is a liar and a fraud.
When the markets move in one direction, the investors that control the majority of those shares will profit while everyone else suffers. It is imperative that any new candidate for President of the United States should begin to take the bull by the horns and show the country just why it should choose them over the incumbent. The economy has worsened under President Obama due to the policies he put into place and the economy will not only suffer from his policy, but it will also suffer due to the financial instability that is currently plaguing the country.
The stock markets were already in trouble due to the credit crunch and the global recession, and President Obama’s policies are only going to make matters worse. If the Democratic Party can make it appear that their only alternative is to have President Trump in the White House, they will have already taken a major step towards taking back control of the American economy.
In fact, it will not even matter who is elected President at this point, because the future stock market is already facing the worst possible economic climate and it is no surprise that the markets will take the opposite course. The only way that a future for the market can be bright is if there is a change in the economic leadership as well as if the current president can take control of the situation and use their executive powers to make certain changes to help the economy grow again.
The fact that no one yet has secured a nomination means that there is no way to gauge how the market is going to react, but there is hope and it does not have to be that way. Even if no one gets nominated, there will still be plenty of time for voters to form a consensus on who will win and what the agenda should be in order for President Obama to win in the future elections.
In previous Presidential elections, there was always at least some sort of consensus about who the winner should be and who should have won. However, this is not always the case and there was never a clear cut winner out of all of the candidates, which means that the market can be unpredictable no matter who is elected.
So, as the elections get closer, there will still be plenty of time for markets to react and determine the winners and the agenda that should be pursued by the new administration. However, the real challenge will begin the day after President Obama is sworn in.