NEW YORK — President Joe Biden ended his reelection campaign on Sunday, leaving the presidential race in uncharted territory. Here are comments from investors:
David Wagner of Aptus Capital Advisors Llc, Fairhope, Alabama
“We may see a bit of reversal in what has worked in the market over the last two weeks, with smaller capitalization stocks running, but by no means would I expect the market to give all those gains up.
“The bigger event for the market will be who will be in the ticket for Democrats because their policies and regulation ideas would be more impactful.
“Biden endorsed Harris, but I think they’ll be a lot of cooks in the kitchen over the next two weeks vying for the position — I believe it’s wide open.”
Guy Lebas of Janney Montgomery Scott
“It’s unclear at this point how Biden’s stepping aside will affect markets. In no small part that’s because we don’t know much of how a Harris administration would differ from a Biden 2.0 in terms of economic policy.”
Ellis Phifer of Raymond James
“I think any time you create this kind of change it creates uncertainty.
“This could be taken negatively in terms of higher deficits. In my opinion, we have two fiscally irresponsible parties.
“Tomorrow, I think ends up with the bond market probably on the negative side.”
Art Hogan, Chief Market Strategist, B. Riley Wealth
“As it pertains to the ‘Trump trade,’ I would offer up that the Trump trade has been indistinguishable from a significant mean reversion in small caps predicated on the Fed likely cutting rates in September and Treasuries seeing a significant drawdown in yields.
“Of course, we will have to wait until Monday, but my gut tells me that this is a less of a surprise for markets, which have been a significantly efficient forward pricing mechanism.”
Quincy Krosby of LPL Financial, Charlotte, North Carolina
“This was expected. It was really an issue of not if but when, and now the next stage is who will it be. The question is, does his endorsement carry for Vice President Harris? Obviously the Vice President would be the easiest route. But there were so many comments from leading Democrats seeking a more open process for a nominee. The market is going to navigate through this.
Marc Ostwald, Chief Economist & Global Strategist, Adm Investor Services, London
“I think it helps to remind people that – and this is probably the more important point – how does this change the outlook for the Congressional vote? Because there was quite possibly the GOP getting a clean sweep, simply because a lot of people would have been saying ‘if that’s all (the Democrats) have to offer, then no thank you and let’s hand it all over to the Republicans and to Trump.’
“This may change that particular perspective. Both races are going to be close, there’s no question about that. But that is actually very material to the outlook for the U.S. dollar, for the U.S. deficit, because it’s about legislation and passing legislation.”
James Koutoulas, CEOAt Hedge Fund Typhon Capital Management
“I think you’ll see a little more volatility just because it’s added uncertainty. Trump is still a very strong favorite to win, but Biden was so awful any replacement has a slightly higher chance to beat him.”
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