67% of investors say Trump is better for stocks than Biden, but market forecasts are all over the map

In a landscape where economic policy and market performance often intersect, a CNBC poll found that investors favor former President Donald Trump’s potential impact on the stock market.

The poll, which polled 400 investors, traders and money managers, found that 67 percent believe Trump would benefit more from stocks.

Don’t miss:

CNBC said the sentiment appears to be rooted in historical performance. During Trump’s four-year tenure, the S&P 500 rose 68%, while the Nasdaq rose 137%. By contrast, under the Biden administration so far, the same indexes have gained 44% and 34%, respectively.

However, the investment community is divided on the short-term trajectory of the market. The survey found an even split between respondents; a third anticipate a decline, another third expect gains, while the remaining third see a limited market.

Trends:

This uncertainty reflects the factors influencing today’s economic landscape. While presidential policies can influence market sentiment, other elements often play a bigger role. As Kristina Hooper, chief global market strategist at Invesco, told the New York Times: “Markets are politically agnostic. With good reason: it doesn’t matter.”

See also:

The recent market rally has been largely attributed to investor excitement around artificial intelligence (AI) rather than political developments. CNBC noted that Microsoft has emerged as the leader in the AI ​​race, with 50% of survey respondents believing it is best positioned to capitalize on the technology. Surprisingly, Nvidia didn’t make it to the top of this list.

The Federal Reserve’s monetary policy decisions continue to be a factor. Two-thirds of those surveyed expect the Fed to cut interest rates before the end of the year (many see a rate cut as early as September), a move that could hurt the market.

Interestingly, despite the clear preference for Trump in terms of market performance, investors expressed concern about the current state of the major indices. Eighty percent of respondents admitted to feeling uneasy about the strong concentration of technology stocks in the benchmarks.

Trends:

The story continues

Looking beyond equities, the survey highlighted India as the most attractive overseas market, followed by Japan and Europe. Corporate bonds have emerged as the preferred investment vehicle in the absence of equities.

As the 2024 election approaches, investors are being reminded that while presidential rhetoric often ties market performance to administration policies, the reality is far more nuanced. Historical data shows that markets are generally in an upward trend, regardless of which party occupies the White House.

Ultimately, as the poll results indicate, while investor sentiment may be leaning toward Trump for potential market gains, the way forward for stocks looks as unpredictable as ever.

Read on:

“THE SECRET WEAPON OF ACTIVE INVESTORS” Up Your Stock Game With The #1 “news & Everything” Trading Tool: Benzinga Pro – Click Here To Start Your 14 Day Trial Now!

Get the latest stock analysis from Benzinga?

This article 67% of investors say Trump is better for stocks than Biden, but market forecasts are all over the map originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.