The market has gained momentum since Election Day last week, but CNBC’s “Mad Money” host Jim Cramer feels that stock market investors are being exposed to a number of risks that could trigger a potential selloff. Can and can produce.
“We are worried that we can move towards a constitutional crisis.”
Notable among those concerns is what Cramer describes as a potential “constitutional crisis”, due to President Donald Trump’s unwillingness to accept defeat and pave the way for a smooth transition for former Vice President Joe Biden, Which is seen as winning the 2020 race. White house
“We are concerned about the fact that we can move towards a constitutional crisis,” the CNBC host said on Wednesday.
“It’s not encouraging,” Cramer said, when “the president regularly tweets about how the election was rigged.”
Late Wednesday, Trump, who vowed to initiate a series of challenges to the vote-counting process, tweeted his belief that he would still win the presidential election that most major news outlets and political Biden was called in favor by experts on the weekend. . The 45th president wrote, “With 72 million votes, we received more votes than any sitting president in American history — and we will win!”
“From the stock market perspective, this is a problem.”
“It does not appear that he will vacate the premises in January,” Cramer said Wednesday.
“By denying the validity of the election and trying to contest it in any way, they are definitely destabilizing the situation,” he said. “From the stock market perspective, this is a problem.”
However, it is unclear at what point Trump’s reluctance to win the election and the path to a peaceful transition of power will affect the market.
Stocks have mostly been climbing the notion that election in the US will result in a divided government, with Biden in the Oval Office and Democrats failing to get a majority in the Senate – a political scenario that has historically been positive. Stock because it will not result in changes that can be seen as market disruptive.
The Wall Street Journal reported that Trump has been doing a patchwork of legal attacks in a long-running effort to prevent officials from authenticating election results.
So far, experts see no reason to believe that Biden’s current popular-vote lead and his edge in Electoral College will not expand when the final votes are over.
According to the Associated Press, Biden received 290 votes in the Electoral College, which is more than the 270 needed for the presidency, compared with Trump’s 214. The AP has yet to determine the winner in Alaska, Georgia and North Carolina, with Biden leading the way. Georgia and Trump leading in Alaska and North Carolina.
Meanwhile, Cramer also noted the resurgence of COVID-19, which includes an increase in hospitals in the US and elsewhere in the world, and the lack of new relief packages for troubled companies as other headwinds that investors pay full attention to Have been. for the time being.
On Wednesday, the Dow Jones Industrial Average DJIA,
Two-day win streak, but S&P 500 Index SPX,
And Nasdaq Composite Index Comp,
Completed the day vigorously.