Joe Biden will have a landslide victory?
Donald Trump appears to be suffering due to the “Anti-incumbency” sentiment, with people looking for change.
Bruce Springsteen echoed this sentiment eloquently by declaring that he will be “on the next plane to Australia” should Trump be re-elected.
Springsteen is an iconic all-American Pop Star. He wields a lot of influence amongst the voters. His theme song “Born in the USA” is said to be like a national anthem for the Americans.
Bruce Springsteen: I'll be "on the next plane" to Australia if Trump wins https://t.co/Zh8NKmv3JR pic.twitter.com/mbBrKalVdl
— The Hill (@thehill) October 16, 2020
This state of affairs has led Billionaire Rupert Murdoch, one of Trump’s avowed followers, to predict that Joe Biden will have a “landslide victory“.
EXCLUSIVE: President Trump's influential supporter, media mogul Rupert Murdoch, is telling close associates he believes Joe Biden will win the election in a landslidehttps://t.co/qHF4OOUIj6
— The Daily Beast (@thedailybeast) October 15, 2020
Relationship between the USA & China will normalize under Biden’s presidency
One of the striking contrasts between Donald Trump and Joe Biden is that while the former has been relentlessly attacking China, the latter has been wooing them.
Trump called Corona the “China Virus” and also made life difficult for the Chinese by imposing heavy tariffs on their imports into the USA.
China has caused great damage to the United States and the rest of the World!
— Donald J. Trump (@realDonaldTrump) July 6, 2020
On the other hand, Biden has expressed support and sympathy for China.
There is alleged to be business dealings between the top brass in the PRC and Biden’s family members.
Biden can’t stand up to China.
They own him.
His son,brother and sister-in-law are,and have been, partners with businesses owned by Communist China and high level members of the CCP.
Records I have seen show over $30 million paid to the #BidenCrimeFamily and a lot more to go.
— Rudy W. Giuliani (@RudyGiuliani) October 8, 2020
So, the first fall-out of a Biden presidency is that the anti-China sentiment that is presently prevalent across the Globe may dissipate to some extent.
All companies which have a presence in China will benefit
According to an analysis done by Jim Cramer, most of the leading US companies have a substantial manufacturing and customer base in China.
These will benefit if the relationship between the two Countries softens.
“When it comes to earnings, to prospects, to growth, I was absolutely stunned that two-thirds of the stocks in my charitable trust would likely make more money under Biden than under Trump,” the veteran investor-anchor said.
The list includes top companies like Apple, NVidea, Broadcom, Salesforce, Pepsi, Starbucks etc.
He also suggested that some of the stocks (such as Apple) may be rallying in anticipation of a Biden victory.
However, Cramer hastened to clarify that Biden will bring other problems to the stock market such as the dreaded capital gains tax etc.
He also acknowledged Trump’s role in keeping the stock markets thriving despite the slowdown.
“I am not saying Biden would be better for the stock market as a whole. The Trump White House has been very aggressive about wanting to keep the market happy.” Cramer said. “I’ve never seen anything like it”.
Indian stocks that are in demand due to the anti-China sentiment may suffer?
It is well known that several Indian companies, including specialty chemicals and API manufacturers have surged over the past few weeks in anticipation that India will fill the void created by the anti-China sentiment.
It is possible that some of these stocks may suffer if China comes back into favour amongst the mandarins in the USA.
Also, the “China Plus One” strategy, which is aimed to breaking the stranglehold of the PRC, and provide a boost to developing economies like India, Vietnam, Bangladesh etc, may take a backseat.
We will have to carefully monitor the situation and take appropriate steps as warranted by the circumstances.
