News
Biden, Trump pose ‘unprecedented risks’ to financial markets: strategists By Investing.com
Analysts at Piper Sandler highlighted what they see as extraordinary risks posed by the potential re-election of President Joe Biden or former President Donald Trump.
According to the company, both candidates present unique challenges that could significantly impact financial markets and the country.
Biden, who currently holds 99% of the pledged delegates for the Democratic nomination, faces significant internal pressure to step aside, Piper Sandler says. Despite this, his closest advisers are reportedly urging him to run for re-election.
The company highlights that betting markets reflected a drop in Biden’s chances of being the Democratic nominee from 86% to 61% after a poor performance in the debate.
They believe that if Biden steps aside, Democratic delegates and superdelegates will decide who will replace him, with Vice President Kamala Harris and California Gov. Gavin Newsom the leading candidates.
Piper Sandler suggests: “The smarter move would be to pick a traditional governor from the heartland of the United States instead of Newsom.”
The Democratic panic is fueled in part by fears that if voters perceive Biden as unfit to serve, it could lead to a major ballot catastrophe.
Meanwhile, Piper Sandler said Trump’s recent debate performance was notable for his restraint and arguments against Biden, especially on issues like border security.
However, they believe Trump’s habit of making sweeping and often inaccurate generalizations remains a concern.
Piper Sandler notes: “Trump makes these blanket statements that are either misleading or outright false due to an unusual combination of minimal knowledge of the facts and total disregard for the truth.”
Analysts conclude that the risks posed by both candidates are unprecedented, stating: “Last night’s debate could hardly have provided more evidence for our view that both Biden and Trump pose unprecedented risks to financial markets and the nation.”