Investors believe the stock market could see headwinds under a Biden presidency

By StockHastix On Jan 2, 2021

</ifQrame></div><p></p> <ul> <li>CNBC polled more than 100 chief investment officers and portfolio managers about where they stood on stocks under a new administration.</li> <li>Two-thirds said the first four years of Biden presidency will be worse for stocks than Trump’s term.</li> <li>Still, Wall Street is optimistic that the Dow Jones Industrial Average will reach new highs next year.</li> </ul> <p></p> <div class="group"> <p>Wall Street investors largely believe a Joe Biden presidency could mean lower stock-market returns, according to a new CNBC survey. </p> <p>As a part of CNBC’s Quarterly Report, we 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. The survey was conducted from Dec. 14 to Dec. 23.</p> <div style="height:100%" class="lazyload-placeholder"></div> <p>Two-thirds said the first four years of Biden will be worse for stocks than Trump’s term.</p> </div> <p></p> <div class="InlineImage-imageEmbed hasBkg" id="ArticleBody-InlineImage-106816399" data-test="InlineImage"> <div class="InlineImage-wrapper InlineImage-wrapperNoCaption"> <div class="InlineImage-imagePlaceholder" style="padding-bottom:45.248868778280546%"> <div> <p><svg width="20" height="20" viewbox="0 0 20 20" fill="#002F6C" aria-labelledby="title desc" role="img" focusable="false" data-analytic-id="expand-icon" class="InlineImage-background"><title>Zoom In Icon</title><desc>Arrows pointing outwards</desc><circle cx="10" cy="10" r="10" fill="white" stroke="#002F6C"></circle><path d="M9.20185 10.7982C8.96049 10.5568 8.57037 10.5568 8.32901 10.7982L5.67901 13.4482V11.2346C5.67901 10.8938 5.40308 10.6173 5.06173 10.6173C4.72037 10.6173 4.44444 10.8938 4.44444 11.2346V14.9383C4.44444 15.279 4.72037 15.5556 5.06173 15.5556H8.76543C9.10679 15.5556 9.38271 15.279 9.38271 14.9383C9.38271 14.5975 9.10679 14.321 8.76543 14.321H6.55185L9.20185 11.671C9.44321 11.4296 9.44321 11.0395 9.20185 10.7982ZM14.9383 4.44446H11.2346C10.8932 4.44446 10.6173 4.721 10.6173 5.06174C10.6173 5.40248 10.8932 5.67903 11.2346 5.67903H13.4481L10.7981 8.32903C10.5568 8.57038 10.5568 8.96051 10.7981 9.20187C10.9185 9.32224 11.0765 9.38273 11.2346 9.38273C11.3926 9.38273 11.5506 9.32224 11.671 9.20187L14.321 6.55187V8.76545C14.321 9.10619 14.5969 9.38273 14.9383 9.38273C15.2796 9.38273 15.5556 9.10619 15.5556 8.76545V5.06174C15.5556 4.721 15.2796 4.44446 14.9383 4.44446Z"></path></svg></p> <div style="height:100%" class="lazyload-placeholder"></div> </div> </div> <div> <div class="InlineImage-imageEmbedCaption"></div> <div class="InlineImage-imageEmbedCredit"></div> </div> </div> </div> <p></p> <div class="group"> <p>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.</p> <p>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.</p> <p>While investors believe Biden’s policies could create headwinds for the overall market, some sectors would fare better than others. Consumer discretionary, industrials and financials will perform the best under a Biden administration, according to the survey.</p> <p>Utilities, consumer staples and energy could have a hard time outperforming, the survey said.</p> <div style="height:100%" class="lazyload-placeholder"></div> </div> <p><a href="https://www.cnbc.com/2020/12/28/investors-believe-the-stock-market-could-see-headwinds-under-a-biden-presidency-.html">Source </a></p><div class="stock-160" style="text-align: center; " id="stock-1452937477"><iframe src="https://cdn.plus500.com/Media/Buttons/Responsive/45876/index.html?set=Start_Trading_Buttons&language=EN&country=GB&url=https%3A%2F%2Fwww.plus500.co.uk%2F%3Fid%3D128619%26pl%3D2&isRW=1" width="160" height="70" scrolling="no" frameborder="0" style="border:none">