Stock Market Booming Despite Gridlock and Uncertainty Around Election
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The US stock market is booming despite the sad state of American politics and the flaws of both Biden and Trump. This may be because investors expect political gridlock.
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The stock market rally is fueled partly by expectations that AI will remain unregulated despite risks of job losses, instability, and distortion of public discourse.
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The market assumes AI companies will thrive regardless of who wins the election, but a Trump victory would be bad for everyone.
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A Biden win would likely mean higher interest rates that constrain growth, coupled with pressure on the Fed to take inflation risks.
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Given economic challenges and uncertainties, it's hard to see how the stock boom can last, no matter the election outcome.