US Elections 2020: Trump or Biden? Anil Singhvi explains why markets are on a roll, despite fiasco in America
US elections 2020: The ongoing vote counting is still throwing up sharp swings and US President Donald Trump is sowing confusion with his reactions on Twitter as well as actions by his legal team questioning the vote counting process. What does it mean for the US, global and especially, Indian markets? Zee Business Managing Editor Anil Singhvi gives his incisive take on the issue!
US elections 2020: The ongoing vote counting is still throwing up sharp swings and US President Donald Trump is sowing confusion with his reactions on Twitter as well as actions by his legal team questioning the vote counting process. What does it mean for the US, global and especially, Indian markets? Zee Business Managing Editor Anil Singhvi gives his incisive take on the issue!
Succinctly, Singhvi said that Trump's actions suggest that he has already conceded defeat and this is clear from his tweets, which call for stopping the counting or his party filing lawsuits in US courts. Biden now has a psychological edge.
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The Market Guru said that it appeared as if the markets are not worried, but the US election results, anymore.
The chances of Biden taking the Oval Office have gone up and the initial fears on Donald Trump’s loss do not have any material impact, it seems, Singhvi said.
Contrary to common perception that the markets would fall if Biden is elected, they are trading in the green.
The Democratic Party candidate is also expected to make gains even in the Senate, Singhvi said.
The markets have also discounted the fact that the road to oval office does not look as easy as was thought earlier.
The markets have been behaving contrary to everything that was initially thought of.
The US Fed has indicated that it will continue with the zero per cent interest rate as the economic situation was still worrisome. This is the most important trigger for markets as there could be further delays to the recovery with coronavirus infections going up in the country.
The Federal Reserve has taken this view on the interest rate for the next two years. The money will continue to flow in the markets to ensure liquidity. All this money will come into equities – the most-risky asset class. You cannot make money in debt instruments, the Managing Editor said.
The markets are now looking at the stimulus package irrespective of who assumes office.
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Even in gold, there is a completely liquidity driven rally, he concluded.
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