A survey among top investors conducted by CNBC has found that a majority expect stocks to slump under a Biden administration.
According to The Daily Wire:
CNBC’s survey, conducted earlier this month, polled more than “100 chief investment officers, portfolio managers and CNBC contributors who manage money about where they stood on the upcoming year for stocks under a new administration.”
Two-thirds of those polled said that they believe that the stock market will be worse during Biden’s four-year term than it was under Trump’s four-year term.
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.
The economic outlook appears to be taking a hit as the possibility of a Biden administration grows each day.