Jeremy Siegel: Stock Market Prefers Trump
Economist Jeremy Siegel and Ritholtz Wealth CEO Josh Brown both noted Trump's Wall Street-friendly policies.
President Joe Biden’s widely panned performance in last week’s presidential debate may have dominated political talk shows, but among other points, the event appeared to demonstrate at least a slight stock market preference for former President Donald Trump.
“The presidential debate was the big story of the week and revealed a mild market preference for former President Trump,” Siegel wrote in his weekly blog post on the WisdomTree website Monday.
“Notably, during the 90 minutes of the debate when there was no other market news, S&P 500 Futures rose 10 points, due to Trump’s business-friendly policies despite his higher-policy unpredictability. President Biden’s odds of winning dropped in all the betting markets and speculation is stirring whether he will ultimately be the Democratic nominee,” Siegel wrote.
Meanwhile, Ritholtz Wealth Management CEO Josh Brown made a related point in a blog post Sunday.
“The typical Wall Streeter’s reaction to Thursday night was ‘Okay, perfect,’” he wrote, adding that the event was ideal for investment bankers, traders, portfolio managers, managing directors and Street executives.
“Trump’s victory means a higher likelihood that the 2017 tax cuts from his first term will be extended rather than sunset. This is priority one for people who are involved in the stock and bond markets professionally or who cater to wealthy families,” Brown wrote.
Biden’s debate performance means Wall Streeters “don’t have to get into detailed defenses of Trump’s calls for mass deportations or his Supreme Court justices having overturned Roe v Wade with their non-Wall Street New Yorker friends,” he wrote. ”They can skip all that because no one’s talking about it this week. This week it’s all ‘Can you believe how out of it he was? Can’t they switch him out?’”
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