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IN JOE WE TRUST?
It’s said that on the seventh day God rested, but Joe Biden is just getting started. And markets couldn’t be happier.
After Joey Politics won 9 states on Super Tuesday, it appears that he is the leader in the clubhouse for the Democratic nomination. At the very least, he’s in the top two.
The news sent the Dow soaring 1.1k and all three major indices up at least 3.85% on the day, and out of correction (less than 10% lower than 52-week highs) territory. Believe it or not, the Nasdaq is actually positive for the year. The bar is low, but hey, it’s something.
Investors believe that Joe Biden is good for healthcare stocks, and at this point in time, the broader equities markets. Health insurance stocks were the biggest gainers throughout the day yesterday. No surprises there. Biden’s policy is seen as more moderate (and heath insurer friendly) compared to Bern's plan for the well-being of red, white and blue-blooded Americans. “It’s not Bernie” chants were rumored to have been heard on the floor at the NYSE.
It wasn’t just the former shade-donning VP that got investors hot and bothered. While the Super Tuesday votes were still being tallied, the House of Representatives passed an $8.3B bill for emergency coronavirus funding. The money will be used to combat the spread of the disease, with $3B going to researching a vaccine for the disease and another $2.2B going to prevention and propaganda efforts.
The bottom line ...
And just like that, the stars aligned. We are by no means out of the woods yet but at the very least investors are looking forward to the 2020 election (and beyond) ... and presumably don't believe the end times are upon us. So there's that.
If nothing else, Americans are being very cautious. Can you blame us? Companies are telling employees to work from home and putting the kibosh on unnecessary biz travel. And both American and United Airlines have halted flights to/from South Korea and Italy.
Should the COVID-19 situation worsen, we could be in for another big market drop but until then, let the good times roll.
Stocks rise after Biden's Super Tuesday [CNBC]
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