Biden's capital gains tax hike would be a huge negative on the stock market. As would his tax increases. Remember, the stock market went up during Obama's run due to the actions of the Federal Reserve, not Obama's actions, which I would describe as "net negative" for the stock market. The economic growth during Obama's run was quite anemic by historic measures in terms of recovering from a downturn, which is one of the main reasons the Democrats lost the Presidential election in 2016. I'd be very cautious, and if you think Biden will win, take your stock market gains (thereby paying the lower capital gains rate), shift your traditional IRAs to Roth IRAs (if you are in an income bracket that allows for this) in order to pay the lower tax rate now (versus a higher rate in the future), and look to diversify some portion of your money to non-stock market investments. Biden needs to be careful painting himself as "investors don't need me" (his quote from yesterday). There's a huge group of older Americans who have their 401ks invested in the stock market, and old people vote.
If you wait until Biden wins, the stock market will already have priced in his policy preferences and there will be no money left to be made. Biden says he want a net zero by 2050 glidepath. If Dems don't take the Senate I'm not sure if he'd get it. But there will probably be more favorable treatment for renewables in smaller ways at least, so I think that's one area to look. Given the global move toward decarbonization though, his election might not move prices anyway (winning the Senate would, imo). Also, I'd look at regulated utilities. They earn a regulated return on capital invested plus extra for good performance (which they are usually able to game pretty well), and their capital invested is going to go up. The hotspots for renewables generally are restructured so that the utility does not own much generation (though the plains states generally still monopolize generation and have lots of wind). But even in those cases, the electric grid needs a lot of investment in new transmission pathways for distant wind-farms and more digitization for distributed resources like rooftop solar.
The Stock Market is not the real economy. I think people now really understand that and Covid has really been a eye opening experience to US workers who are suffering right now. People like me who are EMPLOYED, but paying myself monthly out of my savings account because of salary cuts, but at the same time seeing my 401K having gains for some weird reason. Consumer spending ability is the real US economy. Everyone understands that now, and Trump running on Stock Market success while 11 to 15% of the workforce is unemployed and another 25% taking pay cuts will always undercut any messaging on the stock market. Also, with the recent polling you would think you'd start to see sell offs now given the stock market is based on futures, but the fact that futures are still steady shows that Biden isn't freaking out the market in the way that a Bernie or Warren would. Also the raising of the corporate tax rate back to the high 20's is going to be well received with working folks. Most folks know that corporations are STILL sitting on a ton of capital, and we all know that they didn't re-invest the tax cuts they got in 2018 back into their workforce. The voters will support this increase in taxes hands down.
Guns ? because Obama is going to take away your guns part 2. It's probably a mistake to bet stocks on who win the election.
Do you realize that increasing corporate tax rates will reduce the cash companies have to HIRE people? Surely you understand this point?
if only u'd read ur history books Reagan, after realizing that tax decrease lead to skyrocketing budget deficit, increased taxes, an outgrowth of which led to higher employment and sustained GDP growth Clinton, right off the bat, increased tax; the results of which led to decreased budget deficit, the creation of Silicon Valley leading many jobs Obama ended the permanent tax cut introduced by W; his admin rescued the dying economy and proceeded to generate over 70 consecutive mos of job creation
Your cause and effect logic is amateurish. I'm not going to take the time to educate you. Have a good day.
I'd look at the stocks that performed during the Obama reign. Biden has been quite clear that he wants to get the band back together. The private security/protection industry should be getting a huge boost. If the police forces are weakened or unarmed, the first discussion I'm having on the HOA board is about private armed security for my community and other neighboring communities. It's a horrible thought, having these mini-militias running around, self policing. But it could very well be the new reality. You think I'm kidding but this actually was discussed at a recent utility board meeting, informally. Of course these are gun toting bubbas - It's Harris County. Mental healthcare industry will get a huge boost and open up more counseling jobs and admin staff. These larger rehab franchises have an incredible opportunity to grow their business.
If Biden wins (doubtful, as I believe Trump wins easily), then I'd invest in gold. Biden's tax hikes, energy policy, and regulatory regime will destroy corporate profits and decimate families' incomes. The Fed will be forced to do zero interest rates for the entirety of a Biden Administration, because of the headwinds that Biden's policies would create in the economy. Gold is the answer. It's been a NICE economic run under Trump - conservative policies are unquestionably better for the economy.
My company has half a billion dollars in "investment capital" that was gained from the tax cuts of 2018 and other yet my company is instituting a massive salary pay cut and withholding of bonuses until at least December. It's right there in their shareholder statement from a few weeks back. Capital has NOTHING to do with hiring. Corporations only hire when there is need to do so. Sometimes an expansion of sales people or marketing can be put into an investment proposal for a growth expansion but that's RARE in corporate america. Typical expansion and growth is by acquisition. Growth by Acquisition means REDUCTION OF WORKFORCE when you consolidate firms. Given your take here it seems like you have a very very limited amount of experience in corporate america. My assumption based on your post history is you probably work in oil & gas for a smaller company that has a very specific function (maybe pumps, or piping or something) like many Trump voters in the Houston area. The oil and gas market functions very differently where the price of oil drives much of the business, and expansion/growth is typically job by job handed down from the big oil corporations. So what many folks like yourself believe is true of corporate america is VERY different than the vast majority of corporate america jobs. Corporations were totally fine prior to the Trump Tax cuts and were just as aggressive in expansion & growth (mostly still growth by acquisition), and they'll be fine again with a Biden admin that just reverses that cut to put money back into other more responsible investments into the American Economy. How do you fix corporate america's growth by acquisition model that reduces jobs and hoards capital for these acquisitions instead of growing organically? I really don't know, but it needs to be looked at. The majority of my 12 years in corporate america has been spent either with a company about to be acquired, or with a company acquiring companies like the one i worked for prior to being acquired. I've NEVER seen in 12 years a scenario where a company I see decides to use their extra capital to give raises or hire more workers strictly BECAUSE they had more cash on hand.
that's right, the unprecedented fed actions and economic downturn is because of the virus what's trump and his admin doing about the virus ? ignore it, it's a hoax, downplay it, and now..... "live with it"
