How can the Democratic nominees--Bernie Sanders, Joe Biden and Tulsi Gabbard--impact the markets?
Kenny Polcari, senior market strategist at SlateStone Wealth, joined TheStreet to break down his thoughts on the impact.
Watch the full video above for more.
Katherine Ross: Elizabeth Warren is officially out of the Democratic race for president, which leads Bernie Sanders, Joe Biden and Tulsi Gabbard as our remaining Democratic candidates. Here with me is Kenny Polcari, senior market strategist at SlateStone Wealth. Kenny, let's talk about Joe Biden. What does he mean for the markets?
Kenny Polcari: Listen, I think it's clear that the markets out of the three of them that are left, the market's clearly prefer Joe Biden as a candidate. He's center moderate. He's certainly an experienced politician. He's been in Washington for years. You can argue that's good or bad, but the fact is he's very much in control of not only his platform, the position, but it appears that the Democrats, the bulk of the Democrats are now coalescing around him, so that's good for the market.
Katherine Ross: But if Bernie Sanders has a resurgence in the polls, what does that mean for us?
Kenny Polcari: Not so good.
Katherine Ross: By us, I mean the markets.
Kenny Polcari: Yeah, not so good, which I think is actually honestly part of the nervousness and angst that we've been seeing in the market on top of the Corona virus. I think at least last week or the week before when he was very much in the lead, I think the market was starting to get nervous and you saw that happen, you saw that nervousness extend across very specific sectors, healthcare, technology, insurance companies that really got whacked. You saw on super Tuesday when Joe Biden surge that all those sectors, I mean the whole market came back that day, but those sectors really surged. Healthcare was up 5.5% on Wednesday on the back of maybe it's not going to be Bernie Sanders. So I think it's very... I think it's difficult to project, but I don't think he's going to have a resurgence because I think now that there is a center moderate candidate, I think the balance of, the bulk of the country is center.
Kenny Polcari: Whether you're center left or center right, you're mostly center and then you've got the fringes on the side. That's where I think both Elizabeth Warren and Bernie Sanders were too far out on the fringe. So that's my prediction.
Katherine Ross: All right. Kenny, thank you for joining us today and of course from more of the markets, head on over to TheStreet.com.
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