Bernie Sanders possibly running against President Trump is starting to scare investors: strategist

Bernie Sanders possibly running against President Trump is starting to scare investors: strategist

There is a growing undercurrent in markets that say a battle this fall between self-described socialist Senator Bernie Sanders and President Donald Trump could be bad news for stock prices.

The First Trade. For now, the Sanders surge is keeping a lid on the market potential argues Draho.’ data-reactid=”17″>“There is definitely kind of fear [among clients] if you get a candidate like Sanders or say Elizabeth Warren,” said UBS global investment strategist Jason Draho on Yahoo Finance’s The First Trade. For now, the Sanders surge is keeping a lid on the market potential argues Draho.

“It’s more of a headwind that keeps markets from rising higher,” Draho noted.

Sanders is viewed by most rainmakers on Wall Street as anti-big business, anti-stock market and anti-wealth creation. In other words, bad for risk-taking in numerous asset classes, save for perhaps gold and bitcoin.

cautioned DoubleLine founder Jeffrey Gundlach. Even former Goldman Sachs CEO Lloyd Blankfein (a Democrat) is quoted in a new Financial Times story as saying he would perhaps vote for Trump instead of Sanders.’ data-reactid=”34″>“But Bernie, I believe, is stronger than people think, and [the] market is going to have to deal with that,” cautioned DoubleLine founder Jeffrey Gundlach. Even former Goldman Sachs CEO Lloyd Blankfein (a Democrat) is quoted in a new Financial Times story as saying he would perhaps vote for Trump instead of Sanders.

It’s worth noting Blankfein has been a frequent target for years by Sanders.

“The market wants Trump to stay president because he is the most shareholder friendly,” says Sevens Report Research founder Tom Essaye.

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