From CNBC:
Some investors are placing bets that the stock market could have a massive sell-off following the election, and some analysts say it’s because of the fear of a Democrats winning the presidency and both houses of Congress....
Krosby said President Donald Trump is still viewed as a better steward of the economy, and therefore better for the market than former Vice President Joe Biden, who has said he would raise taxes on corporations. The RealClear Politics average of polls shows Biden ahead by 5.9 points...
Analysts at BCA Research said the stock market is underestimating how negative a Biden victory would be for investing. “If the Democrats gain control of the Senate alongside a Biden victory, as our Geopolitical Strategy Service projects, financial markets may have to begin discounting a future materially less friendly regulatory and tax policy,” the analysts note.
The Democrats would be negative for corporate profits and put pressure on margins with an expected tax hike, the BCA analysts said.
Some investors are making bets on an election sell-off, fearing a Democratic sweep
Investors are placing bets that the stock market could have a massive sell-off following the election.www.cnbc.com
Democratic Presidents are almost always better for the economy.
Pressure on the margins shouldn’t matter, unless you excessively leverage like Trump...and then you go BK!
