U.S. President Joe Biden delivers an address to the nation from the Oval Office of the White House in Washington, DC on July 14, 2024.
– U.S. President Joe Biden ended his reelection campaign on Sunday after fellow Democrats lost faith in his mental acuity and ability to beat Donald Trump, leaving the presidential race in uncharted territory.
Here are comments from investors:
DAVID WAGNER, PORTFOLIO MANAGER AT 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, CHIEF FIXED INCOME STRATEGIST, 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, MARKET STRATEGIST, 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, CHIEF GLOBAL STRATEGIST, 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
