US goes to the polls under fear of Trump's challenge and attention to Georgia
Thousands of local and state elections, the entire Chamber and just over a third of the Senate are at stake this Tuesday, 3rd, with a climate of distrust.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
United States voters go to the polls this Tuesday, 3, in a vote that begins under great tension. According to InfoMoney, thousands of local and state elections are up for grabs, as well as the entire Chamber and just over a third of the Senate. The biggest fear, according to the same report, is that Trump and the most radical wing of his government will not accept the final result if they lose.
Georgia is the main warning point. According to InfoMoney and Money Times, in the 2020 presidential election Trump lost the state by 11 thousand votes, a margin that today weighs on the assessment of what could happen.
Recent history explains the caution. The same reports report that Trump intimidated state officials in Georgia to try to reverse the 2020 result. In other words, the discussion about the last election was not left behind.
Trump continues to question the 2020 election to this day, according to reports. For those who invest, the central point is not just who wins, but whether the winner will be recognized by everyone in a timely manner. Clear rules and predictable alternation of power are the basis of any functional market, and this is precisely what the fear of contestation calls into question.
Confidence in the electoral process weighs as much as the tax and spending agenda. When the result is delayed or disputed, decisions on taxes, budgets and regulations tend to be postponed, and the market has to live with this wait.
What changes for the investor
There is no way to predict prices, but, in general, uncertainty about the outcome increases volatility, and investors tend to look for assets considered safer until the definition arrives. Exchanges, including Nasdaq, and the dollar can react to each news about counting, certification and statements from authorities. Interest and exchange rates also factor into the account, as expectations about the fiscal direction depend on who will govern. Following Georgia and the reaction of those involved to the result is what indicates whether this uncertainty will be short or long.
Automatically translated from Portuguese.
