Financial giant JP Morgan Chase believes that investors should position themselves for the rising odds that President Donald Trump wins re-election.
Strategist Marko Kolanovic suggested there could be a shift of 5-10 points in polls from Democrats to Republicans if the perception of protests turns from peaceful to violent.
Kolanovic also apparently believes in what some have dubbed the “shy Trump voters” effect.
He also believes that people are inaccurately answering polling questions which could be skewing polls in favor of Joe Biden.
Kolanovic wrote Monday “Certainly a lot can happen in the next ~60 days to change the odds, but we currently believe that momentum in favor of Trump will continue, while most investors are still positioned for a Biden win.”
He added “Implications could be significant for the performance of factors, sectors, COVID-19 winners/losers, as well as ESG.”
The latest betting odds according to the RealClearPolitics average have moved from over 20+ in favor of Joe Biden to near dead even.