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how will a biden win affects the markets

Originally published on Money Management on 16 October 2020

[Adapted from Money Management]

America could see itself swept up by a ‘blue wave’ if there was both a win for Democratic presidential nominee Joe Biden and a Democrat win in the Senate but markets will be watching the impact of his proposed tax changes.

Industry experts said proposed Democratic policies such as an increase in the corporate tax rate to 28% and further stimulus could be a headwind for growth. Biden was also expected to focus on climate-friendly regulatory changes and provide COVID-19 funding for states. ...

Robert Talevski, managing director at Activus Investment Advisors, said: “If Biden wins, share markets might moderate due to his tax increases from 21% to 28%, this will have a negative impact on earnings. Tighter regulations might also be on the cards, this is expected to have a negative impact on financials”.