Analysts and realists are beginning to see that if Joe Biden is tied with President Trump in polls now, the President is likely way ahead in actuality.
Bloomberg writes that JPMorgan Chase are preparing their stakeholders for a Trump re-election win:
Investors should position for the rising odds of President Donald Trump winning re-election, according to JPMorgan Chase & Co.
Betting odds that earlier had Trump well behind challenger Joe Biden are now nearly even — largely due to the impact on public opinion of violence around protests, as well as potential bias in polls, said strategist Marko Kolanovic.
Based on past research, there could be a shift of five to 10 points in polls from Democrats to Republicans if the perception of protests turns from peaceful to violent, he said. People giving inaccurate answers could artificially skew polls in favor of Biden by 5%-6%, he added.
“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,” Kolanovic wrote Monday. “Implications could be significant for the performance of factors, sectors, COVID-19 winners/losers, as well as ESG.”