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Politics : The Trump Presidency
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To: koan who wrote (176794)8/14/2020 11:32:27 AM
From: puborectalis  Read Replies (1) of 355588
 
Some people think that if there is a Democratic sweep in the November election, many of Trump’s policies will be reversed and taxes will increase. Based on that analysis, the stock market could fall about 20%.

But for rare birds who attempt to rationally understand the stock market, it may come as a shocker that under one scenario the stock market may rise about 12% on a Democratic sweep. To understand this scenario, think of a party of drunkards where everyone loves a person who serves the most alcohol. At present, the stock market is behaving like a party of drunkards. The equivalent of alcohol is massive borrowing and money printing. Thus, the stock market is loving a potential Democratic sweep because Democrats will borrow more than Trump has.
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