Why Wall Street Is Banking on a Blue Wave

“President Trump loves to say that if Joe Biden wins the White House, stocks will crash, retirement accounts will vanish and an economic depression ‘the likes of which you’ve never seen’ will engulf the nation. But much of Wall Street is already betting on a Biden win — with a much different take on what the results will mean,” Politico reports.

“Traders in recent weeks have been piling into bets that a ‘blue wave’ election, in which Democrats also seize the Senate, will produce an economy-juicing blast of fresh fiscal stimulus of $3 trillion or more that carries the U.S. past the coronavirus crisis and into a more normal environment for markets.”

“Far from panicking at the prospect of a Biden win, Wall Street CEOs, traders and investment managers now mostly say they would be fine with a change in the White House that reduces the Trump noise, lowers the threat of further trade wars and ensures a continuation of the government spending they’ve seen in recent years.”