Jim Cramer who is an analyst from CNBC thinks that there is a structural force by the transmission of Covid-19 that drives the movement in the stock market regardless of the outcome of the presidential election.
Cramer expressed his view in the Squawk on the Street show that he believes there is no problem of who will win the presidential election. The market trend caused by Covid-19 is enough to influence market movements. The Stock Market recorded a strengthening last week driven by Washington negotiations to add a Covid-19 stimulus package.
Investors are still focused on examining the progress of the presidential election between Donald Trump and Democratic candidate Joe Biden, with about three weeks to go before the election. Some are of the view that the recent national polls leaning against Joe Biden versus Trump will have a detrimental effect on the stock market because of the policies that Biden wants to implement. Previously, Biden had stated to raise higher tax rates.
Cramer, on the other hand, argues that the development and adaptation of technology, especially in the field of video conferencing and cloud computing, has driven the stock to grow positively. However, some sectors such as the financial sector are expected to be under constant pressure.
