Tired of the market impact of Trump's tweets, financial industry players are hoping Joe Biden's victory will pave the way for a more stable era. They are also reassured by the centrist policy that Joe Biden should adopt if the Republicans keep the Senate.
Investors and financial industry executives breathed a big sigh of relief on Saturday when major television networks announced Democrat Joe Biden's victory in the US presidential election, delivering a days-long awaited verdict on who will be next. tenant of the White House. Although current President Donald Trump has said he will challenge the results in court, the "Wall Streeters" who agreed to speak felt there was no doubt that Joe Biden would ascend to the presidency.
"Biden is good news for the markets," said Christopher Stanton, chief investment officer at Sunrise Capital Partners on Saturday.
"We are all so tired of the 'whipsaw' that accompanies Trump's tweets."
“The markets are going to like it because Biden won't go too far to the left,” said Jim Awad, senior managing director of Clearstead Advisors.
"It will be a centrist government, not a government by tweets."
Call for unity and calm
JPMorgan Chase & Co CEO Jamie Dimon, who heads America's largest bank and whose voice is among the most influential in the financial industry, called for unity and calm.
"The time has come for unity," he said in a statement. "We must respect the results of the US presidential election and, as we have done in every election, honor the voters' decision and support a peaceful transition of power."
Robert Wolf, a major Democratic donor and former head of UBS Group AG, who now heads 32 advisers, expressed a more resolute opinion:
"I am delighted, relieved and full of hope for the future of this country," he said in a text message.
All eyes on the makeup of Biden's cabinet
During his campaign, Joe Biden released a series of leftist policy proposals on the topic of taxes and regulations that made Wall Street cringe. These proposals were seen as a call to progressive voters, however, and few see them now come to fruition as Republicans could keep the Senate and Joe Biden does not achieve a landslide victory. The makeup of Biden's cabinet will also be critical as some of the officials who make it up are likely to be involved in economic stimulus packages that the White House will need to negotiate with Congress and have broad powers to craft Wall Street regulations.
The name of Lael Brainard, current governor of the U.S. Federal Reserve and former McKinsey consultant, has been cited for the post of Treasury secretary, while Joe Biden has previously tapped the former derivatives regulator and banker of Goldman Sachs Group Inc Gary Gensler for Financial Regulatory Advisor. Major U.S. stock indexes last week posted their biggest weekly gains since April as investors bet on Biden's victory and the retention of a Republican Senate, a scenario that could prevent any significant tax hikes or tightening regulations.
Fears of more tweets from Trump
Investors nevertheless fear that Donald Trump's legal action, if successful, will result in erratic stock market movements.
“Investors need to be prepared for some volatility,” said Jason Ware, chief investment officer at Albion Financial Group.
“There is definitely a risk to the stock price if we get bad tweets. The good news is that it would be short lived and we are changing hands for someone who I think is much more capable.”
Republicans have already launched several ballot counting lawsuits and Donald Trump has said his teams will be launching more as the Republican National Committee has attempted to raise at least $ 60 million to fund proceedings.