investors' Election Update
Remember when politics was the No. 1 storyline in America, and you could not run fast enough to get away from political ads and debate analysis??
Those days?have?gone by the wayside in the midst of the coronavirus outbreak, but, for now, the next presidential election is still slated for November and the outcome has become perhaps even more important with the advent of the national and global pandemic.?
The month of March changed the political landscape in America when former Vice President Joe Biden won a majority of Democratic convention delegates on March 10, Super Tuesday, and then claimed a clean sweep of four states the next Tuesday. From March 17, Democratic political pundits were waiting to see if Vermont Sen. Bernie Sanders would end his presidential nomination bid, creating a clear Trump vs. Biden race for president six months before election day.?
And what if that is the choice you end up with??
According?to?the March edition of?Spectrem’s?monthly study Wealthy Investors and the Election: A Guide For Financial?advisors?in 2020, there was a greater percentage of Democratic-leaning investors who planned to vote for the?Democratic?candidates?than there?were?Republican-leaning investors who planned to vote for President Trump. Among Democrats, 86 percent intended to vote for the?Democratic?nominee, whether it was to be Sanders or Biden, and among Republicans,?74 percent intended to vote for Trump.??
And the one-quarter of Republicans who were not planning to vote for Trump? Nineteen percent claimed to be undecided and 7 percent were going to vote for the Democratic nominee.?
The Spectrem study had a near-equal split of investors who were Democrats, Republicans or Independents, and among the Independents, 36 percent were planning to vote for the Democrat and 23 percent were planning to vote for Trump. However, 37 percent of the Independents were undecided as of mid-March.?
Remember that these?results?came while the possibility of Sanders winning the Democratic nomination remained more viable than it appeared at the end of March.?
There are numerous differences between President Trump and former Vice-President Joe Biden, just as there are differences between Republican and?Democratic?platforms that will be considered when?voters?choose for whom they will vote. One key consideration for investors, however, is what they believe will be the impact of the new president on the economy of the United States.?
Remembering?that these answers were given prior to the severe outbreak of coronavirus in America, 44 percent of investors thought a second Trump?administration?would be positive for?the?economy?of the United States, and 29 percent thought a Biden?presidency?would benefit the American economy.?Only 8 percent felt that way about a Sanders presidency.??
The April edition of the Spectrem election report will be issued April 15 and it will be interesting to see how the?narrowing?of?choices?and the?coronavirus?will impact investor attitudes toward the November?election.?