Which presidential administration would be better for business?

foxbusiness.com:

SlateStone Wealth chief market strategist Kenny Polcari and 'The Big Money Show' co-host Taylor Riggs discuss whether rising inflation is affecting consumer spending on 'Making Money.'

The collective wisdom of Wall Street is often much wiser than any one analyst, pundit or poll, and that collective wisdom seems to be banking on a Donald Trump victory this November. A clear pattern has emerged between stock returns and presidential polls, with American business clearly favoring Trump.

In a recent letter to investors, billionaire hedge fund manager Scott Bessent noted that when Trump leads in the polls, stocks have a rate of return 10 times better than when President Biden leads. 

He explains that he is bullish on the market for what he believes is the same reason the market broadly is bullish: Trump seems to be en route to capturing both the Republican nomination and the White House.

Trump seems to be en route to capturing both the Republican nomination and the White House. (Getty Images/Photo illustration / Fox News)

Over the last 14 months when Biden has been ahead in the polls, stock returns have been lackluster, averaging an annualized 3.4%. Conversely, when Trump has led, stock returns have averaged an annualized 35.2%.

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Bessent lays out a convincing argument to his Key Square Capital Management investors based not on politics, but the stark policy differences between Trump and Biden.

Portions of the tax cuts signed into law by Trump will expire in 2025, and Biden has repeatedly advocated for repealing some, if not all, of those tax changes, and then pushing tax rates even higher. Trump, on the other hand, wants to extend the tax cuts at a