by James Rickards
Daily Reckoning
It’s widely believed that the stock market looks ahead and discounts the future. But consider this November’s presidential election…
Joe Biden has a substantial lead over President Trump in the polls. But Biden’s platform is not what you would call market friendly. For example, it calls for a 39.6% tax rate on dividends and capital gains.
But the stock market is near all-time highs again, with the Dow Jones Industrial Average nearing 27,000, the S&P over 3,200 and the Nasdaq actually at record highs.
What more proof do you need that stock markets are clueless when it comes to discounting future outcomes?