What Trump’s Hospitalization Means for Markets
Donald Trump had a pretty busy week. He nominated a judge to the Supreme Court, participated in an incredibly chaotic debate with Joe Biden and was admitted to a hospital to be treated for COVID-19. What does all of it mean for the financial markets?
It is likely that markets will continue to slide until the situation with Trump and the virus become clearer. While reports say that Trump’s condition is improving, he also has been receiving treatments usually used in serious coronavirus cases. Do not expect a Wall Street turnaround until his situation has more clarity. After all, markets do not like uncertainty, and a country’s leader being in the hospital raises numerous questions.
The first is how will the government function while he is sick. Not only is Trump sick, but other close advisors have also tested positive. Important bills such as new relief packages to certain industries could be delayed as a result of Trump’s sickness.
In addition, there is the uncertainty of the presidential race. Will there be more debates? How soon will Trump have the energy and ability to get back to the campaign trail? Biden has seen some of his best poll numbers come out since the debate last Tuesday, and a long hospitalization could tighten the window for Trump to make up ground. Will Trump use the virus to try and delay the election? It’s unlikely, but Trump’s moves going forward will be as always unpredictable.
Until investors start to see these answers more clearly, it is unlikely that U.S. markets will respond well. Keep an eye on any updates from the White House to see new developments in the situation.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.