A survey conducted by CNBC found that two-thirds of top investors surveyed believe that the stock market will perform worse the first four years of Biden’s presidency than it did under President Trump.
CNBC’s survey, conducted earlier this month, polled more than 100 chief investment officers, portfolio managers, and CNBC contributors about how the Stock Market will fare under Biden.
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-years, even with President Trump having to deal with a worldwide pandemic.
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.
What Will The Stock Market Do Under a Biden presidency?
The survey showed that Wall Street Execs expect the Dow-Jones to either stagnate or dip down to as low as 25,000 points from where it currently sits at just above 30,000 points.
For the first three years of his Presidency, Donald Trump had America’s economy running on all cylinders which as late as February saw the Dow Jones closing in on 30,000 points.
Of course, that when the coronavirus pandemic, which originated in Wuhan China, sent the stock market and the economy spiraling downward.
At its lowest point, the DJIA dipped below 18,600 points in late March.
But under President Trump’s leadership has since rebounded nicely, which as of 12/29 now stands at 30,316.
Trump Tries To Boost Economy Once Last Time Before Leaving Office
President Donald Trump has sought to help Americans once more before leaving the Oval Office on Jan. 20th, by pushing for a $2,000 coronavirus stimulus check as part of a recent stimulus package.
While President Trump’s efforts failed and he was forced to sign a stimulus package in which Congress only negotiated a $600 stimulus check.
Trump’s $2,000 COVID stimulus check received a new lease on life after Nancy Pelosi and the Democrat-led House passed a bipartisan bill that would increase the payments from $600 to $2,000.
We will find out this week if Mitch McConnell and the Republican-led Senate dares to reject the House bill mere days ahead of Georgia’s Senate runoff election.