How will markets react to the 2020 US Presidential Election? You would be astounded at the response that such a question receives. After all, the United States has been a highly political nation since its inception and this year there is no better time than now to take stock of how it will affect the upcoming presidential elections.
In all probability, this election will be nothing like what the American public is used to, as there are far more players in the political arena. As you can imagine, with two major political parties vying for a share of the White House, it is possible for there to be a dramatic shift in the market, even though it may not feel that way at first.
As one of the parties begins the primary season, the candidates will begin to engage in increasingly hostile rhetoric. This will cause tension between these candidates and the media. While many voters will see this as a positive development, others will be worried about the damage that this could do to the economy.
The other candidates will soon get into the race, and the competition will only intensify in the months ahead. There are three candidates with long odds that have the best chance of winning the election – Clinton, Trump, and Johnson.
The Democrats have an overwhelming popular vote lead, but the Democrats are facing a fierce challenge from their Republican rival. This puts an added dimension to the political environment that will have ripple effects throughout the market.
The Democrats are also trying to cut a surplus in the trade deficit. Although they have had some success in doing so, the Trump administration’s policies will likely cause some problems. One of those problems is how will markets react when the United States withdraws from the Trans-Pacific Partnership (TPP).
If the United States does decide to pull out of the agreement, the trade deficit will undoubtedly drop, which will reduce the value of the dollar. This may prompt investors to hold back on buying.
However, the United States still remains a strong trading nation, and this drop in the trade deficit will not be enough to cause investors to pull away from their investments. In fact, this could very well encourage them to go ahead with their purchases.
The Democrats hope to use the loss of the Trans-Pacific Partnership to try to increase the trade deficit, thereby reducing the trade deficit. Unfortunately for them, there is also the possibility that China will take advantage of this to increase its trade deficit, since it will want to reduce its deficit too. Even if this does happen, it will still not be a significant enough hit to put a dent in the U.S. economy.
On the other hand, the Republicans may not be as successful in attempting to increase the trade deficit. Their main strategy is to reduce the budget deficit, although this is difficult to do without increasing taxes on the middle-class households. They do have some successes on this front, such as passing legislation which allows them to pay off some of the debt incurred by the stimulus package that they passed during the Obama administration. However, this does not guarantee a good outcome.
In addition to that, the Democrats will be working hard to reduce the trade deficit in order to make sure that the country has a strong economy. They will also likely be seeking to renegotiate some of the tax laws, which will lower the overall tax burden, and increase employment. This will ensure that unemployment rates are kept down.
The trade deficit will likely reduce if the economy grows and the deficit is lowered, but it may not be enough to prevent the United States from falling back into recession. If the United States is able to avoid a major trade disaster, it should be able to emerge stronger than it was before.
Once the economy stabilizes, the president should be able to use it as a basis for negotiating another round of economic stimulus package. In the meantime, the Democrats should try to push through the legislation that will reduce the trade deficit so that it is less severe and they can negotiate for another round of economic stimulus package. There is no reason why the two parties cannot work together in this regard.