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A Joe Biden Presidency: Part 2 ~ If you saw yesterday’s post, you’re aware of how I think markets will respond, assuming the Biden victory holds. Today, I’m going to focus on what a Biden presidency will mean for our economy. Let’s start with the obvious: Keystone is a dead duck. One of Mr. Biden’s first election promises was to withdraw the permit for cross-border construction, and it’s unlikely he will back off. ... Next is climate change. During the campaign, Mr. Biden promised that he would apply to re-join the Paris Climate Agreement. That puts his climate policies in line with those of our government. Canadians can also expect smoother trade relations. This should benefit investors who would welcome a softening of trade rhetoric and tariffs which often create instability and inefficiency. I concluded my column as follows: All in all, it appears a Biden presidency should be beneficial for investors and for Canada as a whole. As Mr. Trump was fond of saying: ‘We’ll see.’ The full column appeared in this week’s edition of our in-demand newsletter, Internet Wealth Builder. Our subscribers have regular access to the Building Wealth team’s geopolitical insights and investing advice. If you’re interested in signing up, you can do so https://bit.ly/3njE8Qb.

"In Flanders Fields, the poppies blow Between the crosses, row on row, That mark our place; and in the sky The larks, still bravely singing, fly Scarce heard amid the guns below."... John McCrae, Canadian poet, physician, author, artist and soldier during World War I, and a surgeon during the Second Battle of Ypres, in Belgium. See more

As I wrote in the most recent edition of our in-demand newsletter, Internet Wealth Builder, Joe Biden will apparently be the next President of the United States. I say apparently because, although he is over the top in electoral college votes, weeks of recounts and court challenges lie ahead. Assuming the Biden victory holds, what’s at stake for (a) markets and (b) Canada?... Here’s part of my column: ’The extreme outcomes have been taken off the table both a blue wave and a red tide,’ wrote Michael Mullaney, head of research for Boston Partners. ‘That means we’ll be in some sort of gridlock situation, which is what markets like. Historically, a split Congress has been the best environment for stocks, no matter who the president is.’ Taking a longer view, historically U.S. markets tend to perform better when a Democrat is in the White House. According to BMO, since 1929 the S&P has gained an average of 7.5% a year under Democratic administrations as opposed to 1.7% under Republicans. Look for tomorrow’s post where I’ll outline what a Biden presidency will likely mean for Canada. Our subscribers have regular access to the Building Wealth team’s geopolitical insights and investing advice. If you’d like to sign up, more information is available https://bit.ly/3njE8Qb.

With the U.S. election still top of mind, I thought it would be interesting to take a look at how the markets performed under previous presidents. Donald Trump took a great deal of credit for the mostly robust market performance investors enjoyed during his administration and frequently referred them as the greatest stock markets in the history of the markets. The truth is that a president's ability to impact the markets is generally indirect and marginal. After al...l, it’s Congress that sets tax rates, passes spending bills, and writes laws regulating the economy. It’s telling to note that on Wednesday and Thursday global markets showed strong results signalling, in essence, that investors and traders weren’t fussed by the potential of a Joe Biden presidency. So, back to Trump’s assertion. Did he preside over the strongest markets of all time? No, he didn’t. A quick look back to 1953 and President Eisenhower’s first term tells us there are seven presidents who have bested him. In order, they are: Bill Clinton both administrations Dwight Eisenhower first administration Barack Obama both administrations Ronald Reagan second administration George H.W. Bush For more of the Building Wealth team’s investing and election insights, sign up for our newsletters https://bit.ly/3njE8Qb.

Followers may recall that yesterday’s post featured my take on what’s likely to happen if President Trump emerges the winner in tonight’s election. On this, Election Day 2020, I’m going to outline what, in my view, a President Biden victory would mean for Canadians. Let’s start with the obvious. Say goodbye to Keystone. One of the former vice-president’s first promises was to immediately kill the permit for cross-border construction. ... What will happen is the launch of a major program to promote green energy. (Here's an investment tip. Several Canadian green energy companies have operations in the U.S. and could benefit from this initiative. They include Brookfield Renewable Partners, Algonquin Power & Utilities, Innergex Renewable Energy, and Boralex Inc.) On the trade front, Biden is not a big fan of tariffs, so it’s unlikely that he’d use that as a cudgel against us. Our relationship should be much smoother. And finally, a word of caution. The most immediate concern for investors would be a long delay in resolving the vote count. The stock market hates uncertainty. Nothing would be worse than having this drag on for weeks. Let’s hope we get an answer tonight. You can read my full column, which appeared in yesterday’s Toronto Star https://bit.ly/3l3wiby.