INVESTORS PICK DONALD TRUMP AS BEST FOR STOCKS: POLL
Investors, traders and money managers think former President Donald Trump is a better option than President Joe Biden, according to CNBC's Delivering Alpha Stock Survey.
Sixty-seven percent in the poll of 400 investors sided with Trump over Biden. CNBC pointed out part of the explanation of Trump's popularity among that demographic could be that during the former president's time in office, the S&P 500 rose by 68 percent. Over the last three years of Biden's presidency, the index grew 44 percent.
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Nasdaq grew by 137 percent during Trump's four years in office, while it has grown by 34 percent during Biden's term, according to CNBC, which added that both markets hit historic highs this year. CNBC said the S&P 500 has grown at an average annual rate of 13 percent over the last 10 years.
The poll's results were reported the morning after Biden and Trump faced off in the first presidential debate. Following the debate, the Democrat Biden was perceived to have struggled against his Republican challenger. Some snap polls after the contest gave the debate to Trump.
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One-third of survey respondents said they expect the markets to drop at least 5 percent by the fall, while another third said they expect a rise of at least 5 percent by then.
Investors in the poll also gave their views on the Federal Reserve. The U.S. central bank has been battling elevated inflation that at one point hit 40-year highs. Policymakers hiked rates to slow the rate of price increases, which in turn has made the cost of capital expensive. While inflation has slowed, it has not dropped to the Fed's 2 percent target. The central bank has held rates at their current two-decade highs to help cool inflation.
A majority of investors polled said that they trust the Fed to do right by the economy, according to CNBC, while 23 percent expressed doubts about the institution.
"Two-thirds said they believe the Fed will cut interest rates before the end of this year, but 23 percent disagreed, saying there'll be no cut in 2024," CNBC reported. "Ten percent of respondents said they would urge the Fed to cut at the next meeting on July 30-31."
High rates have contributed to a jump in the cost of things like mortgages. The increase in interest rates has made buying a home expensive and priced out a huge number of Americans from purchasing property.
2024-06-28T21:01:48Z dg43tfdfdgfd
