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Press Release
Financial markets are “on edge” after the unexpected announcement of US President Joe Biden ending his reelection campaign and endorsing Vice President Kamala Harris, affirms the CEO and founder of one of the world’s largest independent financial advisory and asset management organizations.
In an extraordinary decision that upends an already dramatic race for the White House, Biden, said in a written statement on Sunday that it was the “greatest honour” to serve but his withdrawal was “in the best interest of my party and the country”.
The announcement caps a tumultuous period in US politics, which began with his disastrous debate against Donald Trump in June. Biden says he will remain president until January.
The deVere CEO says: “This has thrown a new variable into the 2024 election equation, putting markets on edge.
“With Biden stepping down, the primary question looming over investors is whether to continue betting on the ‘Trump Trade’.”
The term Trump Trade refers to the market behaviors and trends that emerged during Trump’s presidency, driven by his administration’s looser fiscal policies, deregulation, higher tariffs and infrastructure spending.
“The impact of these policies on the markets included a rising dollar, higher bond yields, specific sectors like banking, healthcare, energy, and industrials seeing gains due to deregulation and anticipated infrastructure projects, and Bitcoin seeing increased interest,” notes Nigel Green.
He continues: “Now, as Vice President Harris steps into the spotlight, the markets are set to experience heightened uncertainty.
“The immediate challenge for investors is to ascertain whether Harris can quickly consolidate her party’s support, secure the Democratic nomination, and mount a formidable campaign against Trump.
“If Harris can gain significant traction and pose a credible threat to Trump’s lead in the polls, market volatility is expected to persist.
“Investors will likely remain on tenterhooks, closely monitoring the political landscape and adjusting their portfolios to hedge against potential risks.
“This sustained volatility would be a reflection of the uncertainty surrounding Harris’s ability to compete effectively against Trump.”
The key for investors will be to remain agile, diversifying their portfolios to mitigate risks and capitalize on opportunities as they arise.
Those with a higher risk tolerance will look to exploit the volatility by making tactical trades based on the latest political developments.
Nigel Green concludes: “Biden’s decision to step down and endorse Harris has set the stage for a tumultuous period in the markets.
"Whether Harris can mount a successful campaign against Trump, or whether Trump will solidify his lead, will be the critical factors determining the extent and duration of this market volatility.”
About deVere Group
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, over 80,000 clients and $12bn under advisement.
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