As American voters go to the polls today, the entire globe sits in anticipation of the outcome. Republican Donald Trump and Democrat Kamala Harris have been running neck-and-neck for quite some time now. Amidst this, CNBC’s Jim Cramer revealed his expectations of the elections.
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Here’s Why Harris Could Win
Looking at Monday’s market action, Jim Cramer suggested that Wall Street could be expecting Harris to win the presidency. According to Cramer, traders are trying to predict election outcomes. He suggested that they are scouting for indications that one party is more knowledgeable than the others.
Given that a startling new poll released this weekend showed Harris ahead in Iowa. It should be noted that Iowa is a strongly red state that appeared to be a lock for Trump, who won the state in the previous two elections. He further implied that some on Wall Street were predicting a Harris triumph. According to Jim Cramer, the survey showed Harris ahead of Trump by 47% to 44%. He added,
“I’m not sure the market’s right about what a Harris presidency would mean for business, but at least now we have a blueprint for what Wall Street thinks it’ll mean.”
Along with this, he pointed out how certain industries witnessed a spike. For instance, builders like DR Horton, Lennar, and Toll Brothers pocketed gains. This was linked to how investors could be awaiting the impact of Harris’ planned tax incentives and assistance for first-time homebuyers.
In addition, other firms that depend on imports also seem to be siding with Harris. This is because of Harris’ more moderate trade policies in contrast to Trump, who has promised to impose drastic trade duties across industries, according to Cramer.
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Will Inverse Jim Cramer Strike Again?
Cramer makes a lot of predictions because of his TV program. Sadly, many of them wind up being terrible and false. This further caused social media users to coin the “inverse Cramer effect.” They suggested that traders should act in the opposite way from what Cramer advises. Tuttle Capital Management even started an ETF inspired by the same called Inverse Cramer Tracker ETF. But it failed to make an impact. Matthew Tuttle, the fund’s portfolio manager previously said,
“We started [the ETF] in order to point out the danger of following TV stockpickers, Jim Cramer specifically, and the total lack of accountability.”
While the above statements about Harris’ potential win seem solid, the market continues to stay vigilant. Cramer also suggested that he doesn’t look at “traders as the best prognosticators.” As a result, Cramer believes that it isn’t worth changing our portfolio.
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