A Joe Biden win in November’s US Election is a "foregone conclusion" given "diabolical" economic fundamentals under incumbent President Donald Trump, according to some industry commentators, while others have branded the Democratic candidate as a "fuddy duddy" who is unlikely to win over the US general public, warning his Presidency would lead to higher corporate taxes and increasing regulatory scrutiny of the mega-cap tech stocks.
This comes less than eight weeks before the polls take place, with the former Vice-President currently at a seven-point lead relative to the incumbent President, according to an average of national polls by FiveThirtyEight.
David Absolon, investment director at Heartwood Investment Management, pointed out only three presidents have been "overwhelmingly re-elected" in modern history: Richard Nixon, Bill Clinton and Ronald Reagan.
He said each had "solid" positive net approval ratings at 17.7%, 16.1% and 15.3%. At time of writing, however, Trump's net approval rating stands at a minus 12.1%.
"Trump is losing support from one of his most crucial constituencies: senior voters. For years, the Republican Party has relied on older Americans to offset the sizeable advantage enjoyed by Democrats with younger voters," Absolon explained.
"But seniors are also among the most vulnerable to Covid-19 and some polls suggest they are losing faith in Trump as he pushes to reopen the economy, at the expense of stopping the virus."
Thomas McMahon, senior analyst at Kepler Partners, believes Trump losing out in his bid for re-election is a "foregone conclusion" given the US's "diabolical" economic fundamentals - and the fact Trump's popularity has chiefly been driven by his economic focus over the years - as well as his poor handling of the coronavirus pandemic.
"Many Americans have been willing to support the man if he can deliver growth and jobs. But I think it is a vocal minority who will support him if these evaporate," he reasoned.
Last Friday, the S&P 500 and Dow Jones indices suffered a blow as they were dragged down by a sudden fall in the performance of the FAANG (Facebook, Amazon, Apple, Netflix and Google) stocks, sparking fears the US tech sector - accounting for a vast proportion of its stockmarket - climbed too quickly and overheated.
One of the biggest concerns among investors regarding a Biden victory is the tech sector will come under greater scrutiny, leading to major headwinds for the largest components of the US stockmarket.
However, the team that runs the Manchester & London investment trust is calling for a Biden victory, as they "already see most of the fears priced into the ‘mega tech' stocks".
It said: "We would welcome a certain type of break-up for Google. We worry most for Facebook and Apple (which we do not own), but we guess that Facebook can drive its earnings forward even against some strong regulatory headwinds.
"We believe a more professional government will provide certainty for investors and drive growth. We also applaud all environmentally positive policies."
Zehrid Osmani, manager of Martin Currie Global Portfolio trust, said Biden's focus on green energy infrastructure is "more front-end loaded" than Trump's infrastructure plans, which means the US "might get more of that coming rapidly".
"The flip side of that coin is it will be negative for the high carbon intensive sectors such as energy, basic materials, dirty utilities in particular," he added.