They're going to miss the bloated bastard when he's gone.
To Wall Street, Donald Trump has been a champion of the rich, so much so that Goldman Sachs is now telling investors to unload greenbacks because Joe Biden is coming.
Investors should sell the dollar, as chances grow for a decisive win by Democrat Joe Biden at next month's election and as progress continues towards an effective vaccine against COVID-19, Goldman Sachs strategists said on Friday.
Strategists led by Zach Pandl said in a note the two key drivers for the currencies are now the Democrats taking control of both Congress and the Senate in a Biden win on November 3 and progress on a vaccine.
"Although there are uncertainties around both, the risks are skewed toward dollar weakness, and we see relatively low odds of the most dollar-positive outcome-a win by Mr. Trump combined with a meaningful vaccine delay," Goldman said.
Goldman said the chances of a so-called "blue wave" have risen to more than 60%, based on Biden's growing lead over President Donald Trump in the polls.
"In our view, a "blue wave" US election and favorable news on the vaccine timeline could return the trade-weighted dollar and dollar index to their 2018 lows," the bank said.
6 comments:
Should Biden win the US will still be a nation ruled by a multi millionaire.
Democrats will be no less hostile to Canadian trade.
The US will still continue it's downward trend to irrelevance.
On the positive side ; the world will know US foreign policy for more than the next few hours!
TB
Off subject, need to throw it in..
https://grain.org/e/6437
TB
The wording in the article looks like Goldman Sachs does not want a vaccine for Covid-19. The article isn't exactly clear about that. I am assuming that the billionaires are reaping huge rewards from the pandemic and want it to continue.
Interesting link, TB. Thanks. I'm less concerned about how the virus passed to humans as I am about whether the Chinese could have prevented it leaving Wuhan in the first place.
I found that reference a bit obscure also Toby.
The US dollar tends to rise during worldwide crises. So presumably they mean if a vaccine arrives and is used around the world, the world pandemic will subside and other countries won't panic-buy the US dollar in a "flight to stability". And in fact, the track record shows that even if the crisis screwing things up originates in and/or is at its worst in the US, it will still cause the American dollar to rise.
It's actually possible they mean the same about a Biden win--increased stability caused by the world superpower's government not being led by a madman may cause a normalization and reduction in world tensions, hence the US dollar will drop.
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