There's the stock market and then there's the politicians. As I speak to the executives of major corporations that have reported I am blown away about how well the companies are doing. I am talking about managed care, banking, airlines, and drugs.
But if Elizabeth Warren or Bernie Sanders gets the nomination then I can tell you that you would be hard-pressed to own of these.
I thought last night's debate was pretty frightening when it comes to these companies. They are right in the cross hairs of what the debates were about last night. Whether it be criminal prosecutions of drug execs, the breaking up of banks, the end of managed care as friction in the economy or the ability to buyback stock, something Bernie Sanders keeps going after, the profits would be stripped and the earnings estimates are meaningless.
Oh and memo to billionaires - you are the target of all the Democrats.
Under Trump though, you could see business as usual and business as usual is pretty darned good here. Sure manufacturing is weak. No one debates that.
But spending here?
Wow - it is just so strong.
Are stocks cheap? Yes, if a Republican wins. No, if a Democrat wins with the exception of Joe Biden.
It's not binary.
It will be if Warren, the clear front runner, wins.