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Biden drops out of presidential race: How will markets react?
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Does This Matter to Financial Markets?

It certainly might. If markets had indeed started to price such a reduced regulatory environment that a second Trump presidency might bring forth, especially if there were to be a Republican sweep of the legislature, then yes. I think to a degree, the likelihood of these events may have to be repriced as one would think that this move re-energizes Democratic Party voters and independents that may have reluctantly voted for the candidate not in an obvious state of cognitive decline. I think this may psomewhat as purple states that were looking red are back in play, and while blue states that were looking purpllish might back into their usual positions. In short, depending on how well the Democratic Party handles this, the projected electoral maps that I have seen may very well appear more competitive than they had. It's less than a month until the Democratic Party Convention kicks off in Chicago. The Republican Party Convention drew incredibly large ratings last week, as that party's obvious nominee had just barely survived an attempted assassination only days earlier. If the DNC has not openly pre-selected a ticket by mid-August, and holds an open convention, that convention may draw NFL-type ratings. So, this matters to the populace and It matters to the news flow. I think it probably a bit early to do more than trade these headlines based on momentum and the flow of capital. Investing this far ahead of real, solid polling based on knowledge that we just can't have right now, would in all honesty be akin to gambling. The election in early November likely did just get closer than it would have otherwise been.
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NYSE floor trader for over 30 years. Day trader, long-term investor, and anything in between.
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