Besides everything else, the United States is a bastion of freedom, a shining city on a hill, the last great hope of mankind. The United States of America is and always has been a country where business is done. America is a trading nation, and as the saying goes, “America’s business is business.” And in recent years, there has been one major political party at the national level that is pro-business (Republicans) and one that is anti-business (Democrats).
Stock markets are very sensitive to changes in the economic environment, so it is intriguing to watch their recent price increases after former President Donald Trump not only heroically survived an assassination attempt, but also officially secured the Republican presidential nomination and named his running mate.
Are the markets signaling that they are for a second Trump term? It seems so.
Former President Trump has officially won the Republican nomination with his vice presidential candidate, Sen. JD Vance, in tow.
The Republican senator from Ohio, a former Marine, private equity expert and author of a best-selling book that later became a Netflix special, received the nomination on Monday, two days after the former president narrowly escaped an assassination attempt during a rally in Pennsylvania.
“Before this terrible event, markets were already sensing a Trump victory after the debate. Now investors are sensing what? A ‘red victory,'” Jason Katz, managing director and senior portfolio manager at UBS, told Varney & Co., predicting what could happen if the GOP ticket wins the White House. “The 2017 tax laws will become permanent, perhaps there will be additional tax cuts. There will be a lot less flawed regulations; we could see a very strong revival in M&A activity,” he explained.
I’m still a little skeptical of the notion of a “red victory” as Republicans have an occasional tendency to snatch defeat from the jaws of victory, but the presidential election is looking very good for the Trump/Vance team. However, they should take nothing for granted and fight to the end as if they were 20 points behind in the polls.
But Tuesday’s market surge is intriguing. At the time of this writing, Tuesday morning Alaska time, the Dow is up 550 points and the S&P is up seven points, although the NASDAQ is oddly down 140 points – a little less than a three percent decline.
But it still looks pretty good. Is this a reaction to the events of the last few days and the increased prospect of a second Trump administration?
See also: Stock market sees major crash as Biden is taken down by his own words
This economic chart could be most damaging to Biden in the 2024 election
Of course, there’s no way to know; you’d have to literally look into the minds of millions of people who make millions of investment decisions every day, and correlation, let’s not forget, is not the same as causation. But it’s intriguing that the DOW is taking off today, the day after the confirmation of the Republican presidential team Trump/Vance.
America’s business is business. A second Trump term would be good for business. It would be good for the economy. It would be good for the standard of living of Americans. It’s good to see that the markets seem to be anticipating this.
