A high percentage of voters who operate in the stock market say that Donald Trump would be a better president than Hillary Clinton for their portfolios, and one in four said they would change their asset mix if he was elected, while a similar percentage would if the Democrats win. A recent poll from Bloomberg and Morning Consult revealed that investors prefer picked Trump over Clinton as president. According to the report, 50 percent of respondents said Trump would be better for their portfolios while 33 percent chose Clinton as a better alternative. Another 17 percent of respondents were not sure which candidate would be better for their investments, Business Insider reports.
Partisan loyalty was cited as being the driving force behind their choices. Almost eight in 10 Republicans say Trump would be better for their holdings, while six in 10 Democrats say Clinton would be. It is twice as likely that independent voters choose Trump as the best option for their portfolios. The poll was comprised of 2,001 registered voters, 945 of whom had investments in the stock market.
“Donald Trump has made his business experience a key point of his campaign, and that seems to attract voters. However, our survey also indicates that investors can change their minds, and many say that will change the composition of their portfolios and seek safer assets regardless of who is elected,” Morning Consult founder Kyle Dropp explained.
While the aforementioned poll shows that Trump has an advantage over Clinton when it comes to investors, a recent survey by Reuters showed that the billionaire has a disadvantage against his rival in the presidential race. The survey, conducted from June 20-24, showed that 46.6 percent of the national electorate supports Clinton, while 33.3 percent support Trump. Another 20.1 percent said they would not support any of the candidates. This is so far the highest lead that the former Secretary of State has had on Trump in a national survey since she became the presumptive Democratic nominee.
“I think a lot of the market reaction is less about the financial impact and more about populism and what it means for the liberal economic order,” said Glenn Hubbard, a top economic official to President George W. Bush who now serves as dean of the Columbia Business School.
Trump had enjoyed a brief boost in national polls after the mass shooting in Orlando, Florida on June 12, when he insisted on banning the entry of Muslims in the country. However, the rise was only temporary — similar to the increased support he received after the terrorist attacks in San Bernardino, California.
The Reuters survey only captured some of the reactions of voters before Britain’s decision to leave the European Union following the referendum on Thursday. For some experts, the survey results suggest that the inflammatory rhetoric of Trump has generated a wave of anti-globalization that has touched other Western countries.
Meanwhile, some experts think the market may want the Democrats to keep the White House, given the history of stocks outperforming under Democrats.
“If the markets could punch a vote, they would choose the Democratic candidate, presumably Hillary Clinton,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
Peter Kenny, an independent market strategist and founder of Kenny’s Commentary, also thinks the market would prefer Clinton.
“Markets would respond negatively to Trump. Too many variables,” he said.
The New York Times wonders if the victory of Brexit was a forecast of what could happen in November in the United States. But the fact is that the referendum result was very tight, with 51.9 percent choosing to leave versus 48.1 opting to remain.
“You never know if there will be a domino effect, and we worry about other countries securing their borders,” Robert Stevenson, a frequent visitor to the Midlands, was quoted as saying. “We were certainly surprised.”
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