In an historic move, President Biden announced Sunday he is no longer running for reelection though he plans to serve out the remainder of his term. After a debate performance that created concern from Democrat leaders, the powers that be did not think Biden was the best candidate to defeat Trump in November. As of this morning, it appears that VP Harris will be the party’s nominee.
Harris the Front-Runner | President Biden, as well as the Clinton family, quickly endorsed Vice President Harris’ candidacy for the nomination. We believe it is likely she will become the nominee. However, we would also caution that her selection is not a done deal, especially given that an open convention remains a possibility.
Harris Likely to Continue Biden Policies | Overall, we would expect to see a broad continuation of current Biden administration priorities across key market-relevant areas including geopolitics, trade, healthcare, tech controls, antitrust, and fiscal priorities — though nuances may differ and will become clearer as her individual platform is clarified.
Election Odds | Former President Biden stepping aside does not currently change the election odds according to the political analysts of Raymond James which continue to give Trump a 60% likelihood of winning and 50% likelihood of a GOP Sweep. We will be watching closely for whether Harris receives the Democratic nomination as expected and her potential VP picks.
The Markets | As of today, this news does not create a need to alter our investment process. We will continue to keep a close eye on the political process to see if any investment strategy changes are warranted due to tax policy, geopolitical tensions, or other political factors.
About the Author
Matt Price serves as a Partner and Managing Director for The Price Group of Steward Partners. He resides in Houston with his wife, Emily, their four children and "Fisher" the family golden retriever. Matt studied at the University of Pennsylvania – Wharton School of Business for his Certified Investment Management Analyst (CIMA®) designation after receiving his undergraduate degree from the University of Tennessee - Knoxville. Over the past 12 years, Matt has helped families make high quality, common sense decisions regarding their wealth and their legacy. Matt firmly believes everyone needs a wealth coach!
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The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. All investing involves risk including possible loss of principal. Past performance is no guarantee of future results.
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