After the assassination attempt on former president Trump on July 13, Yahoo Finance Executive Editor Brian Sozzi had to assemble the team to look at the impact that a second presidential term would have on the markets. Joining Opening Bid is Stifel chief Washington policy strategist Brian Gardner, C.J. Lawrence partner & portfolio strategist Terry Gardner, and Yahoo Finance Washington correspondent Ben Werschkul to dissect this unique time for markets in US politics.
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Video Transcript
You know, probably over the weekend, the odds of a President Trump uh victory in November Rose and uh and that’s, you know, perceived as being positive for business, positive for markets.
And um so we think there’s probably a little bit of a bump today in the, in the equity markets.
Brian, is that the right takeaway here that investors, I’ve even had some investors tell me they have already started to price in a second Trump presidency.
But is that the right call based on everything we’ve heard the past 48 hours?
Yeah, I think it is a risk on trade.
I mean, a lot of times when there’s conflict chaos, you expect a risk off trade.
But for Terry’s comments, the markets continue to price in the likelihood of a Trump victory that’s gone up and that, that’s a risk on trade, right?
So it is positive for equities, Brian.
Is it?
Yeah, go ahead.
Oh, I just had a short term risk question for you guys about the about the convention happening this week.
We’re seeing a lot of evidence that Trump wants to be a unifier.
He gave an interview saying he’s going to rewrite his speech, Biden had gave his address to the nation last night.
Curious your guys thoughts on whether A, you believe that or b whether that matters for markets, for markets.
I’m not sure it matters politically.
I think it has the potential and, and maybe it flows through that.
You know, I think you have to discount the 1st 24 48 hours and see how politicians react longer term.
Terry is talking about, you know, looking across valleys, I think the same applies for politics.
So we’ll see if the unity message lasts.
But I think Trump has more to gain out of this unity message if he can pull it off.
And, and I will say that, you know, his campaign has been much more disciplined this time around than 2016 and 2020 and it reinforces their confidence, investors, confidence of a Trump victory.
Yeah, I think Brian hit it on the head, calm, breeds confidence.
So if we can take the rhetoric down and have a little more of a steady state approach to politics, I think that would be positive for, for stocks and for bonds.
