The reason this matters to investors is the so-called Trump trade.
The stock market did very well following former President Donald Trump's victory over Hillary Clinton in November 2016, but smaller businesses, in particular, were beneficiaries.
When we listen to some of the policy ideas that Trump has discussed, such as measures intended to protect smaller U.S.-based businesses, companies in the small-cap Russell 2000 index stand to benefit.
Since the June 27 debate, the Russell 2000 has outperformed the S & P 500 by more than 6 percentage points.
So, investors must acknowledge that if Trump's path to victory against Harris or a potential unknown pinch-hitter is less certain, then uncertainty must, by extension, apply to the Trump trade.
Persons:
Joe Biden, Biden, Kamala Harris, Donald Trump's, Hillary Clinton, Trump, Russell, Harris, —
Organizations:
Trump, CNBC, NBC UNIVERSAL
Locations:
IWM