#TRUMP

#USElectionDevelopments

There were three critical local elections held yesterday:
Governorship in New Jersey and Virginia, and mayoralty in New York.

All the candidates supported by Trump not only lost; the margin was quite significant.
One of the reasons for this is that the recent meme token activities and the strange PR moves related to Elon have not resonated with voters.
I think it's interesting what conclusion the market draws from here.

There is a fact like this:
Yesterday's votes were not a by-election.
The real power struggle will take place in the midterm elections that will be held about 10 months from now.
The entire Congress will be renewed, while one third of the Senate will be renewed.
Trump's power to enact laws or advance his policies will be evident primarily there.

Yesterday's chart gave a very clear signal to Trump.
If this continues, it may completely erode its support among the broad voter base.
Therefore, the likelihood of behaving more cautiously in the upcoming period is increasing.

My inference is as follows:
If Trump shifts towards a more moderate and controlled line to compensate for a possible loss; this would reduce political tension and ease the markets.
Therefore, I see the current developments as positive for the financial markets.