Stock markets were on a wobble throughout much of the day as investors began to take note of reports that Democratic presidential candidate Joe Biden is on the verge of winning the White House. If Joe Biden wins Ohio, Nevada and Arizona in a week’s time, then the Presidency is most likely going to be his regardless if Donald Trump takes Illinois, Missouri and Wisconsin in addition to Ohio.
However, if Biden claims both Nevada and Arizona after securing Michigan as his victory, the presidential race is very likely his regardless of who wins North Carolina, Georgia and Pennsylvania next. The reason why this scenario could happen is that many Democratic voters are moving into these two battleground states as well. In other words, if President Obama has won every state by the biggest margin in the history of the Democratic primaries, which is over seven percent, he will win North Carolina, Florida, Ohio, Virginia, Colorado, Iowa, New Hampshire and Nevada.
Meanwhile, if Barack Obama wins by only one or two percentage points in each of these states, then the battle for the Democratic nomination goes to the senator from Vermont with Senator Hillary Clinton as his biggest competitor. It’s important to note that this scenario is highly unlikely to occur; however, it’s also highly possible. Therefore, it is imperative that people take a close look at their stocks in the days and weeks ahead to ensure that they have the right amount of cash in order to take advantage of this possible reality.
Furthermore, if Barack Obama has won in each of the states, which is highly likely to happen if he wins Michigan and loses his second-place rival, then Hillary Clinton will become the Democratic Party’s nominee. In other words, it is virtually a lock for her to win if she is able to garner over sixty percent of the delegates awarded based on the results of the Democratic primaries. However, if she loses out on the nomination to Joe Biden, it will certainly send shockwaves throughout the financial markets as investors realize just how easy it was for Obama to win over half the delegates despite being viewed as the favorite.
So, if the situation is this way, then how does it happen that stocks may surge in anticipation of Joe Biden claiming Nevada and Arizona after his big victory? Well, it’s because many investors believe that the possibility of him winning these two states are likely to boost his chances of winning the Presidency. For instance, in terms of income, a large number of people will have a big impact on the overall performance of the economy. With the housing market going down and unemployment still high, it means more people will have less disposable income to invest in stocks if they are struggling with unemployment.
In addition, people who are experiencing economic difficulties may elect to invest in stocks such as bonds, municipal bonds and insurance companies in order to secure their financial futures. This in turn means that they can generate more income. Therefore, as the stock market goes down, more money is being made in stocks that will lead to more earnings and profits; this means the stock market may go up.
Additionally, if Joe Biden wins by just a point or two in either of the states, it means that the Democratic ticket will be splitting the popular vote. This is not good news for Hillary Clinton and will reduce her advantage over the Republicans. Therefore, since she will lose some votes in the process, the Republicans could gain more of a lead in the national election. And if the economy suffers, stocks may surge even more as the markets hope the Obama administration can fix all the problems.
If stocks do surge as the result of Joe Biden claiming Nevada and Arizona after his huge victory, there are many reasons for this. The first reason is that the Democratic ticket lost, and therefore, it’s not necessarily bad for stocks. And secondly, it will help boost Joe Biden’s political ambitions and get him more exposure in the national media.