What Happens If Joe Biden Wins the Elections?

What Happens If Joe Biden Wins the Elections? What happens if Joe Biden wins the elections? What effect does Biden being the winner of the election have on the markets? Lee Hardman, MUFG Bank Setup Analyst, spoke to Bloomberg HT channel on the issue. Evaluating the US Presidential elections and the expected effects of this situation on emerging markets, Hardman stated that the scenario with the strongest probability according to the surveys is the “Blue Wave” scenario. "We think risky assets will welcome a possible Blue Wave," Hardman said, adding that the Democrats gain a majority in the executive and legislative power, and that more government spending will open the way to support the economy. Pointing out that emerging market assets could benefit from a more streamlined trade policy of the United States under the Democrats, Hardman said,"In addition to the FED's efforts to keep interest rates low, the FED's looser fiscal policy will create a downward pressure on US real returns and the dollar." On the other hand, Hardman noted that they expect the dollar to be negatively affected by the rising US twin debt.