Self-proclaimed democratic socialist Senator Bernie Sanders is now the undisputed front-runner in the race for the Democratic presidential nomination, having come from behind to dominate the first two contests of the 2020 Democratic race - the Iowa caucuses and New Hampshire primary.

With the Iowa caucuses and New Hampshire primary in the rear window, Senator Bernie Sanders, who won the popular vote by a clear margin in both the first and second rounds in Iowa and a narrow victory in New Hampshire, is shaping up as the new Democratic front-runner, commanding attention from investors as they analyse how the stock market might fare if the Vermont senator were elected president, taking into consideration his socialist bent.

His popularity is surging, as evidenced by a new national Washington Post-ABC News poll, which shows him leading by a huge margin, and strategists claim that markets are starting to display a growing undercurrent that a showdown in autumn between Bernie Sanders and “market-friendly” President Donald Trump could be potentially detrimental for stock prices.

Although the market’s strong run-up in 2020 evidences that investors are not yet exiting stocks over fears that Bernie Sanders might enter the Oval Office, the self-described socialist senator’s continued strong showing in debates and polls has generated concerns that Sanders’ surge is holding back market potential, claims UBS global investment strategist Jason Draho.

Speaking on Yahoo Finance’s The First Trade, the strategist said:

“There is definitely a kind of fear [among clients] if you get a candidate like Sanders or say Elizabeth Warren… It’s more of a headwind that keeps markets from rising higher.”