What Does Biden Exit Mean for Investors?
After weeks of growing calls from Democrats to step aside, President Joe Biden has officially dropped out of the 2024 election.
While there are still many unknowns, the possible path forward is a virtual roll call vote to confirm a new nominee before the Democratic National Convention is held from August 19 to 22. As things stand now, prediction markets and Biden’s endorsement suggest Vice President Kamala Harris is the presumptive Democratic presidential candidate.
From a campaign and policy perspective, we don’t expect Harris’s platform to differ much from Biden’s. However, we do think it could make the election more competitive once again.
What does it mean for investors?
For starters, markets don’t like uncertainty, and some of the strength in risk assets through the summer was likely due to the increased likelihood of a Republican sweep. We wouldn’t be surprised to see more turbulence as the presidential race evolves.
Otherwise, we encourage investors to focus on what stays the same. Spending on security (energy, cyber, supply chain and traditional defense) is likely to continue no matter the outcome of the election, which is why investing in the resulting infrastructure build is one of our highest conviction ideas. Likewise, the national debt and deficit will likely remain on a challenging trajectory under either party, which emphasizes the need to focus on tax efficiency in portfolios.
Rick Barragan is the Managing Director,
Los Angeles Market Manager, for J.P. Morgan Private Bank.
[email protected] | (310) 860-3658
privatebank.jpmorgan.com/los-angeles
Source: J.P. Morgan Private Bank, July 22, 2024 President Biden bows out of the election By Elyse Ausenbaugh, Global Investment Strategist, J.P. Morgan Private Bank.
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