[American Thinker] What is the stock market telling us about the November election?Despite the fact that America currently has over 38 million unemployed workers, the market is down 8.5% this year, having gone up 32% since the late March low. Why is the stock market going up while our economy teeters on the edge of a Great Depression?
There are several factors currently at work in the market with the most obvious being the extraordinary intervention by our leaders in Washington. Congress has authorized mind-boggling amounts of stimulus funds while the Fed has signaled that it is ready to purchase nearly anything and mostly everything. Even more spending and buying are sure to follow. This money flood is so massive that undoubtedly there are mind-boggling sums going into equities.
Washington's interventions in the markets has had a calming effect on prices and volatility, allowing investors to begin to look ahead to November, where it seems that President Trump is ever more likely to win re-election. There are several key reasons why more and more voters are beginning to lean toward Trump. Prior to the Pandemic Lockdown, America was enjoying a tremendous economy, which many voters attributed to Trump's pro-growth policies, such as cutting taxes and reducing regulations. As bad as current economic conditions are now, people are beginning to hope that perhaps the worst has passed. The economy is starting to be perceived as poised to improve rather than worsen, certainly a trend that greatly favors Trump.
Besides the hope for an improving economy, what has been happening to the Biden campaign is a pandemic of self-destruction. There are several growing scandals surrounding the Biden campaign that are unlikely to go away before November. Tara Reade's claim of sexual abuse by then-senator Biden seems to have some credibility, and for those invested in the MeToo movement, the longer Ms. Reade's claims are ignored by Hollywood, the leftist media, and the Democrats, the worse it looks for Biden. The cognitive decline Biden is exhibiting is getting worse, and similar to the Reade situation, the longer it goes on, the more voters will notice and turn away. Recently, Biden insulted black voters when he said, "I tell you, if you have a problem figuring out whether you're for me or Trump, then you ain't black." Finally, there is the growing scandal of the Mike Flynn case, which continues to shine a spotlight on how the DOJ, the CIA, and the FBI attempted to take down the Trump presidency with the Russian Hoax and Mueller investigation. Joe Biden is tied to the mast of this unfolding scandal, as all of it was birthed by the supposedly "scandal-free" Obama administration.