As I’m writing this article on 7 November, we are moving past the election. For many months, I have explained that the market was pricing in a Biden win. Immediately following the election, it became clear to the market that Biden would win, and the stock market has responded positively. I fully expect this trend will continue.
As of today, the election has been called with Biden now President Elect, but, perhaps, more importantly, there has been no call on a Senate majority.
A “goldilocks scenario” for the market – a situation that will vault stocks to new record highs in short order – would be a Biden Presidency and a Senate with a Republican majority. Keep in mind, what I have addressed here so far and moving forward is specifically from a market understanding perspective.
A Biden Presidency and a Republican-controlled Senate is massively stock market positive; it is also heavily dollar negative. A Biden Presidency will issue in a new phase of debt expansion on an epic scale, with multiple trillions of dollars in stimulus packages moving forward.
Understanding that debt is the fuel of the stock market, mass debt acquisition will propel the stock market much higher. Moreover, a Biden Presidency will also bring with it trade deals – something President Trump was unable to do, which is also massively positive for stocks.
U.S. manufacturing will see big gains and create many jobs. We have witnessed the U.S. trade deficit explode in the last two years. Real deals with our global trading partners will see this deficit begin to normalize.
With a Republican-controlled Senate, many of Biden’s campaign “promises” will not happen, and, again, this is stock market positive.
Regarding major tax increases, this will not happen.
Regarding Biden’s promise to reign in big tech, this, as well, will not happen.
Regarding a “Green deal” of one type or the other: the GOP (with a Senate majority) will assure that big oil remains in control. A propping up of big oil is massively stock market positive. Crude oil is the life blood of the entire energy sector of the market, and it is positive for the financial sector as well. Investment banks have massively leveraged bets on the price of crude oil being high.
Mass debt expansion under a Biden Presidency will also propel gold, silver, and cryptocurrencies much higher as well as hyper-inflating the already “Frankenstein debt bubble.”
The U.S. dollar is already under attack from within… by the Federal Reserve’s 100 percent determination to kill the dollar in its current form.
See my 27 October article, “DIGITAL DOLLAR, PARABOLIC DEBT” outlining the dollar’s terminal decline and the upcoming move to a 100 percent digital dollar.
These are some of the main things I see happening with a Biden Presidency.
by Gregory Mannarino,


Comments are closed.

Skip to content