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TD Cowen has outlined the risks and upside in markets (^DJI, ^IXIC, ^GSPC) following former President Trump's choice in Senator JD Vance (R-Oh.) as his vice president and 2024 running mate.
The analyst behind the note, Jaret Seiberg, explains that normally, there is "limited significance to the selection of a vice presidential candidate." However, Trump's selection of Vance may be an exception as he represents the more populist wing of the GOP. If Vance were to be elected alongside Trump, TD Cowen expects a risk to financials, an upside for crypto, and uncertainty for housing.
Market Domination hosts Julie Hyman and Josh Lipton break down some of Vance's policies and how they may effect different sectors in the market.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Melanie Riehl
All right. Meanwhile, TD Cowen is outlining the risks and upside in markets following Trump's pick of JD Vance as his running mate. Running mate. The firm taking a look specifically at crypto, financials, and housing. And what I thought was interesting about this note is the analysts here sort of acknowledges and it's Jared Seeberg, by the way, over at TD Cowen. He says, normally, we assign limited significance to the selection of a vice presidential candidate. He says, doesn't usually matter, change significantly how people change, but he says, yes, we believe Donald Trump's election of JD Vance may be the exception. He talks about how Vance represents the more populist wing of the GOP, and that means that maybe he'll have a little bit more influence. They talk about specific examples here. He's a sponsor of the credit card competition act. That's the one that could be potentially negative for Visa and MasterCard. He has been more resistant to M&A than others in the party as well, including bank M&A, which he talks about here specifically, but also tech M&A is something that he's actually been complimentary of Lena Khan, which is quite rare.
That's right. You know. Very much so. Yeah. Pretty good job. You said. Yeah. His relationship with tech is going to be really interesting to follow because as you said, he comes from the populist wing of the party. That's not a wing, Julie, that has a lot of good things usually to say about big tech. I think we can say. So that's interesting on the other hand, though, the flip side of the coin, you know, Vance worked as a venture capitalist, and he knows Silicon Valley. He knows all those players. He knows Thiel, he knows David Sachs. We recently had, you know, venture investor Joe Lonzio on the program. Thinks very highly of Vance. So how that relationship plays out exactly is going to be really fun to watch.
Right. Is he going to, you know, anger those buddies of his if he does indeed?
If you're a venture investor, you put money to work in companies that you wouldn't you wouldn't mind having big tech maybe make a play for.
Yeah, maybe not.