Atlas Merchant Capital’s CEO, Bob Diamond, has made a surprising choice in the 2024 US presidential election.
Once a lifelong Republican, Diamond has chosen to vote for Kamala Harris, expressing serious concerns over the economic risks tied to a Donald Trump re-election.
Diamond warns that another Trump term could escalate tariffs, raise consumer costs, and further drive the US national debt.
Here’s why Diamond believes Trump’s policies are “too risky” for the American economy.
According to Diamond, Trump is likely to significantly increase tariffs, with proposed hikes of up to 20% on all imports and a potential 60-100% tariff on goods from China.
Speaking on CNBC’s Squawk Box, he warned, “If you take the middle case of tariffs, we’re back to 1935,” pointing to the risk of a trade war that could negatively impact U.S. consumers by raising prices and lowering disposable income.
Why Bob Diamond Isn’t voting for Trump
Diamond’s stance stems from his concerns that Trump’s tariff policies could lead to economic retaliation from other nations, driving US inflation even higher.
Additionally, Diamond criticizes Trump’s approach to the national debt, which has nearly doubled to $37 trillion since 2016, a financial burden he describes as “the biggest cloud on the horizon for the US economy.”
Although he does not expect Harris to make significant reductions in public debt, he believes her approach is less likely to accelerate the debt’s growth.
S&P 500 remains resilient, showing gains as voting continues
Diamond, who voted for Hillary Clinton in 2016, now feels more comfortable with Harris’s positions on international trade and economic policy.
He also noted her recent shift on fracking, as she has backed off any immediate plans to ban it if elected.
As Americans head to the polls, the S&P 500 has remained resilient, showing gains as voting continues.
Analysts, including Tom Lee of Fundstrat, predict a positive outlook for the stock market, irrespective of the election’s outcome.
Lee points to strong fundamentals, a favorable earnings season, and a dovish Federal Reserve as drivers for a potential market rally through year-end.
However, he cautions that the close race could create short-term volatility until results are confirmed.
The Federal Reserve will also meet on November 6th, a day that could add further clarity to the market’s direction as the country determines its next president.
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