Market Overview

Barron's: Are Trump And Sanders Killing The Market?

Barron's: Are Trump And Sanders Killing The Market?
  • The cover story in this weekend's Barron's makes a case that outsider presidential candidates Bernie Sanders and Donald Trump are among pressures on the stock market.
  • Do investors have every right to be nervous about what is playing out on the campaign trail?
  • Other featured articles focus on women and retirement, as well as the prospects for certain pharmaceutical and financial stocks.

U.S. stocks have fallen sharply since Trump and Sanders began rising in popularity in the polls, says this week's cover story in Barron's. Could it be more than coincidence?

"Trump and Sanders: Are They Killing the Market?" by John Kimelman wonder if markets experts, while they are focused on weakness in China, negative interest rates and low oil prices, may be overlooking the political worries of investors here at home. For the past eight months, the rise in these two extreme candidates has correlated closely with the decline in stocks.

Says one analyst quoted in the article, "Financial markets—which have more than enough to worry about—now have to deal with the likelihood of political instability for months to come."

Related Link: Barron's Picks and Pans: Bristol-Myers Squibb, KeyCorp, Core-Mark And More

On the other hand, another expert says, "Having a maverick in the White House would ensure gridlock. And look how well the stock markets have performed in recent years, despite the gridlock between the Obama White House and Congress."

Find out whether investors have every right to be nervous about what is playing out on the campaign trail. Why would they be more comfortable with former Secretary of State Hillary Clinton and former Florida Gov. Jeb Bush? Could Trump's threats to punish China and other trading partners lead to a depression? Would a Sanders Administration lead to the largest peacetime expansion of government in modern American history? And what are the odds that either could win congressional approval of their aspirations?

The article also includes graphs that show just how well the rising polls of each Sanders and Trump have corresponded with the S&P 500 from last June up to the New Hampshire Republican and Democratic primaries.

Other Feature Stories

Check out the special report on retirement to discover why the financial-services industry has done a woefully inadequate job of wooing women, but with women controlling $5 trillion in wealth, Barron's thinks that dysfunctional relationship is starting to change.

See what Barron's feels are the prospects for Bristol-Myers Squibb Co (NYSE: BMY) and its recently approved cancer treatment, KeyCorp (NYSE: KEY) as an overlooked banking bargain and Core-Mark Holding Company, Inc. (NASDAQ: CORE), which may be looking vulnerable.

At the time of this writing, the author had no position in the mentioned equities.

Image Credit: Public Domain

Posted-In: Barron's Bernie SandersEducation Politics Top Stories Media Trading Ideas General Best of Benzinga


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