A new poll shows that investment professionals don’t believe the stock market will hold up well with a Joe Biden presidency.
Survey Shows Investment Experts Worry About Biden
CNBC held a survey where they asked over 100 chief investment officers and portfolio managers about their thoughts of the stock market with a Biden administration.
Two-thirds of the investment pros relayed that they believe four years of having a Biden presidency will be horrible for stocks compared to Trump’s presidency.
Trump Made America Successful Again
CNBC’s poll showed that the insiders say they believe stocks will see a far lower return in the next four years compared to the 60 percent rally they have undergone since Trump took office in January 2017.
The news network reports:
Since Trump’s inauguration in January 2017, the S&P 500 has rallied more than 60% thanks in part to the president’s landmark corporate tax cut that led to a surge in profits and a record in share buybacks. The Trump administration has also relaxed many regulations over the last four years, creating a market-friendly environment for oil and other industries.
Many investors worry that a reversal of the tax cut, which Biden has pledged, could take a big bite out of earnings at a time when market valuations are sitting at multiyear highs. Biden’s tax plan calls for raising capital gains rates for high earners.
While investors believe Biden’s policies could create headwinds for the overall market, some sectors would fare better than others. Consumer discretionary, industrials and financials will perform the best under a Biden administration, according to the survey.
DOW In for A Good Report?
Despite all this, Wall Street is saying it believes the Dow Jones Industrial Average will reach big highs in the coming year.
Investment strategists are recommending that people buy bitcoin.
As the country waits to see how the election will play out, either way, it appears hard times will be upon us for the next few months.