Investors and business leaders are largely pessimistic about the stock market’s prospects under a Joe Biden administration, according to a new survey.
More than 100 chief investment officers and portfolio managers were surveyed by CNBC, and two-thirds of them said they expected stock market gains to be lower under a term of President-elect Joe Biden than President Donald Trump. Many of them fear Biden will undo President Trump’s 2017 tax cuts, which helped spur record profits and increased stock buybacks, according to CNBC.
Wall Street investors largely believe a Biden presidency could mean lower stock-market returns, according to a new CNBC survey.
— Yun Li (@YunLi626) December 28, 2020
The Trump administration’s regulatory rollbacks also helped the market to record growth, CNBC reported. The S&P 500 is up more than 60% since Trump’s inauguration in Jan. 2017. (RELATED: Trump Backtracks On Threats, Signs Coronavirus Relief Bill)
Biden’s tax plan proposes raising capital gains taxes and reinstituting a higher corporate tax rate, according to CNBC. Among those surveyed, about two-thirds still predicted a strong 2021 for the market, as the Biden administration will likely be more focused on economic stimulus and COVID-19 recovery than addressing tax policy. They also predict some industries to outperform others, such as consumer goods, finance, and industrials, according to CNBC.