JPMorgan Predicts Stock Market Bump if Trump Wins
JPMorgan Chase & Co.'s chief equity strategist shared stock market predictions for a Trump or Biden victory.
How will the stock market react to a Trump or Biden victory on Election Day?
A Trump victory could push the S&P 500 index higher by 13%, according to a team of JPMorgan strategists led by Dubravko Lakos-Bujas. The team believes this bump would stem from the energy and financial sectors.
A victory by Joe Biden is predicted to have a “mostly neutral” effect. The strategists believe a "blue wave" would lead to more fiscal stimulus and infrastructure spending but suffer from negative consequences of higher taxes.
Writing about post-election dips and surges, Rich Smith of The Motley Fool writes: "[I]s President Trump right to predict a stock market crash if Vice President Biden is elected next month, and a stock market boom if Trump is reelected? In the short term, he might very well be right — but he could also be wrong. Only time will tell us for sure."
Smith's advice for investors? "Don't gamble on who will win or lose the presidency in November. Instead, bet on a sure thing: That when you're investing for decades, the stock market is the place to be."
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