Investors could tick off one major piece of uncertainty on Saturday after news outlets declared Democrat Joe Biden winner of the U.S. presidential election. The news providing some assurance after days of conflicting reports on who would lead the White House for the next four years.
While current President Donald Trump said he would fight the results in court, several commentators felt there was little doubt Biden would ultimately succeed.
There is still plenty for markets to look forward to, including who will be appointed to Biden's Cabinet, and what it means for economic stimulus, tax reform, and financial regulation. Although financial execs are already weighing in.
“Biden is good news for the markets,” Christopher Stanton, chief investment officer at Sunrise Capital Partners, said on Saturday. “We’re all so tired of the whipsaw that came with the Trump tweets.”
The prospect of a Republican Senate may also provide some checks on Biden's Cabinet appointments. “Markets are going to like it because Biden is not going to go too far left,” said Jim Awad, senior managing director of Clearstead Advisors. “It’s going to be a centrist government, not a government by tweet.”
U.S. stock indexes registered their biggest weekly gains since April this week, as investors bet that Biden would win and Republicans would hold onto the Senate, a scenario that could prevent any major tax increases or regulatory tightening.
“Investors need to be prepared for some volatility,” said Jason Ware, chief investment officer at Albion Financial Group. “There is certainly a risk to stock prices if we get bad tweets. The good news is that it would be short-lived and we are changing hands to someone who I believe is a lot more capable.”