Tags: 2020 Elections | Donald Trump | Financial Markets | Joe Biden | democrats | stock market | taxes

Experts Worry About Markets If Biden, Dems Win in November

biden speaks in the middle of a room of voters in iowa
Former Vice President Joe Biden speaks during a town hall meeting in Newton, Iowa, on January 30, 2020. (Jim Watson/Getty Images)
 

By    |   Tuesday, 07 July 2020 09:37 AM

Financial experts are growing worried that markets could take a hit if Democrats win the White House and both chambers on Capitol Hill in November.

Fox Business Network reported that raising the capital gains tax and the corporate tax could be in Democrats' sights.

"The implications for the stock market from this shift to higher taxes are generally negative," David Rosenberg, the chief economist and strategist at Rosenberg Research, told Fox.

Raising taxes could cause more investors to pull money out of the stock market, which could lead to a sizable drop.

"A drop in the S&P 500 of 10.5% from where it is today is well within reason," Rosenberg said.

Morgan Stanley's chief U.S. equity strategist Michael Wilson, meanwhile, recently told clients that hiking the corporate tax from 21% back up to 35% would make "100-150 points on the S&P 500 a baseline for the impact of a tax cut rollback, all else equal."

And Goldman Sachs' chief U.S. equity strategist David Kostin noted that tax policy is a "larger risk to earnings and consequently to equity prices" than the COVID-19 crisis, which caused the markets to plummet earlier this year.

Former Vice President Joe Biden leads President Donald Trump in the national polling average, and there are even concerns that the fallout from Trump's tumultuous June could harm Republicans to the point that they will lose control of the Senate in the November elections.

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
StreetTalk
Financial experts are growing worried that markets could take a hit if Democrats win the White House and both chambers on Capitol Hill in November. Fox Business Network reported that raising the capital gains tax and the corporate tax could be in Democrats' sights. "The...
democrats, stock market, taxes, s&p 500, investors
237
2020-37-07
Tuesday, 07 July 2020 09:37 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved