US election & stock markets

Takedap

Whatever happened to the old adage that markets don't like uncertainty?  Why have they had large gains worldwide since election day?

jamei305

The maximum point of uncertainty was before election day, as counting progressed one or other outcome was more certain than it had been previously. Now it's clear Biden has won.

[Deleted User]

There's also an expectation that Biden's more radical reforms won't pass the Senate.
A word of caution though. Volumes have been thinner than usual and it wouldn't be a surprise to see gains evaporate.

Thrugelmir

Election has been decided. Certainty again. 

Alexland

Thrugelmir said:

Election has been decided. Certainty again. 

Yup and we may have already seen the relief rally as markets seem to have a bit less puff in their sails today as they start to reflect more on the future ahead.

Thrugelmir

Alexland said:

Thrugelmir said:

Election has been decided. Certainty again. 

Yup and we may have already seen the relief rally as markets seem to have a bit less puff in their sails today as they start to reflect more on the future ahead.

More stalemate and greater levels of intransigence. 

Steve182

Takedap said:

Whatever happened to the old adage that markets don't like uncertainty?  Why have they had large gains worldwide since election day?

It's been described as a Nirvana for investors, Biden as president but a pretty much hung senate so his tax reforms will not get through.

george4064

ZingPowZing said:

There's also an expectation that Biden's more radical reforms won't pass the Senate.
A word of caution though. Volumes have been thinner than usual and it wouldn't be a surprise to see gains evaporate.

Indeed, since it is expected that neither party have a majority in the Senate any new laws or taxes will effectively have to be agreed by both Republican and Democratic senators. As a result this should eliminate the chances of any extreme policies (either from Republicans or Democrats) getting through, hence avoiding any extreme policies being implemented into US law/regulations. All this combined is generally good for US stocks.

Thrugelmir

Further weakness of the $ is forecast though. 

Keep_pedalling

george4064 said:

ZingPowZing said:

There's also an expectation that Biden's more radical reforms won't pass the Senate.
A word of caution though. Volumes have been thinner than usual and it wouldn't be a surprise to see gains evaporate.

Indeed, since it is expected that neither party have a majority in the Senate any new laws or taxes will effectively have to be agreed by both Republican and Democratic senators. As a result this should eliminate the chances of any extreme policies (either from Republicans or Democrats) getting through, hence avoiding any extreme policies being implemented into US law/regulations. All this combined is generally good for US stocks.

If the senate is split 50/50, the VP gets the casting vote so not quite true. 

george4064

Keep_pedalling said:

george4064 said:

ZingPowZing said:

There's also an expectation that Biden's more radical reforms won't pass the Senate.
A word of caution though. Volumes have been thinner than usual and it wouldn't be a surprise to see gains evaporate.

Indeed, since it is expected that neither party have a majority in the Senate any new laws or taxes will effectively have to be agreed by both Republican and Democratic senators. As a result this should eliminate the chances of any extreme policies (either from Republicans or Democrats) getting through, hence avoiding any extreme policies being implemented into US law/regulations. All this combined is generally good for US stocks.

If the senate is split 50/50, the VP gets the casting vote so not quite true. 

True, however I believe that the senate is likely to remain as a Republican majority so any bills the Democrats want to pass they will need to get some Republicans in board to get it through the senate.