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- US President Donald Trump is mounting an unprecedented – and so far unsuccessful – challenge to last week’s presidential election.
- The deadline for their maneuvers is mid-December, the date on which the members of the electoral college vote and certify the electoral results that are tabulated at the state level.
- Experts believe this multi-state legal challenge is about boosting Trump’s image and getting publicity as he prepares to leave the White House.
US President Donald Trump is mounting an unprecedented – and so far unsuccessful – challenge to last week’s presidential election, but that hasn’t hurt Wall Street’s momentum.
Some analysts say the president’s multi-state legal challenge to Democratic candidate Joe Biden’s victory in the Nov. 3 election is about boosting Trump’s image as he prepares to leave the White House, and is unlikely to affect indices. stocks that have little tolerance for uncertainty.
“I suppose Trump is building his brand for the next round of publicity that he will try to get for himself. It doesn’t seem like a serious effort to derail the election results,” said Maris Ogg of Tower Bridge Advisors. .
So far, US stocks have celebrated the election result, with the S&P 500 ending the last trading week at an all-time high, however, that is not due to a preference for Biden but rather relief that the election ended quickly. .
Meanwhile, Trump has refused to admit defeat, instead making unsubstantiated allegations of fraud and refusing to allow his administration to cooperate with the incoming Biden administration.
Even as Wall Street dismisses Trump’s legal challenges, concerns remain that his intransigence could erode governance and scare investors away.
These movements could not only impede a smooth transition of power, but also jeopardize national security.
Boris Schlossberg from BK Asset Management was added.
“As the confrontation turns into legal maneuvering, markets could quickly adopt a risk-averse stance as the United States fails to achieve a peaceful transition of power for the first time in history.”
Motivating the base
The deadline for Trump’s maneuvers appears to be December 14, the date by which members of the electoral college must vote and certify election results that are tabulated at the state level.
Until then, Karl Haeling of LBBW bank said Trump’s strategy is to make sure his supporters don’t take their eyes off him.
“He wants to keep his base as excited as possible because he wants to tweet every day and give his opinion on things, and try to control the Republican Party through popularity with the rank and file,” Haeling said.
READ | ‘#FoxNews is dead’: Trump goes after Fox News on retweet spree
The American media have reported that the president is exploring startups, such as a streaming service, that would be cheaper than launching a television station.
The idea would be to compete with Fox News, the preferred network of American conservatives with which Trump has had an increasingly unstable relationship.
As for the markets, Trump’s moves could affect them “but in the very short term,” Haeling said.
“There is a widespread belief among investors that Trump will not be able to stay as president,” he added.
Sudden changes
Ogg played down Trump’s refusal to budge, saying that Biden’s experience as a former vice president means he will likely come into office well prepared, even if the president doesn’t cooperate with him.
“I guess if you really need to know something, you will get a phone call. I’m not really worried about it,” she said.
More concerning are the sudden regulatory changes from the outgoing administration that could unsettle investors who already fear a resurgence of Covid-19 cases across the country, Haeling said.
On Thursday, Trump issued a decree prohibiting Americans from January 11 from investing in about 30 Chinese companies linked to the military.
It also asked investors with financial interests in those companies, some of which are listed on Wall Street and Hong Kong, to go out in November 2021.
