Summary
The Investment Talks outlines the decision by President Biden to retire from the 2024 Presidential campaign, endorsing Vice President Harris.
Key points
- Biden exit from the race: Current US President Joe Biden announced on Sunday that he will not seek re-election and endorsed Vice President Kamala Harris as the Democratic nominee. Senior members of the Democratic party have expressed their support for Kamala Harris. Donations for the campaign have begun to rise after Biden’s decision.
- Kamala Harris potential nomination: The Democratic convention in Chicago from August 19th to 22nd is a potential venue for the nomination of Kamala Harris, which would draw attention to the party and the new candidate. If Harris becomes the official candidate, she would inherit the funds of the Biden campaign.
- Investment implications: With over three months remaining until the elections, there is a significant level of uncertainty surrounding the potential outcomes. It's too early to think of a Harris or a Trump 2.0 trade, as the change in the Democratic nominee somewhat resets the election path. Markets will continue to focus on the current earnings season and on the potential actions of the Fed, while the implications from the election could become more prominent after the summer when the campaign will enter its hottest phase.
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