Yet, under those circumstances, if Trump wins: Expect more and higher tariffs, which could disrupt trade and increase inflation, and hurt “consumer discretionary, industrial and information technology sectors,” in the view of financial services company UBS. Mr Trump will likely manage to reduce taxes and increase the budget deficit, which will stimulate the economy, but again lead to inflation – which could push up interest rates. There is likely to be less regulation, which will benefit sectors such as fossil fuel energy and financial services.
If Mr. Biden is re-elected but Democrats do not control Congress, the status quo will remain. Expect more regulation (although on Friday the Supreme Court Limited According to UBS, the executive orders, including reducing the regulatory powers of the executive branch and higher taxes for wealthy people and companies than during Mr. Trump's tenure, as well as executive orders “will help companies within the industrial, materials and utilities sectors focus on renewables and energy efficiency.”
Either party gaining control of both the White House and Congress would be unpredictable and could send markets into turmoil. Mr. Biden may be able to make legislative achievements that have been out of his reach so far. Tax increases on the wealthy and corporations are likely. Positive outcomes for clean energy companies are likely, while banks and fossil fuel companies will have a tough time, or so Wall Street thinks.
A landslide Trump win would be the most troubling outcome from a purely financial perspective because he could enact policies that could fundamentally change the way business is done and life is conducted in the United States. The New York Times is covering this Plan of The process for a second Trump administration is underway. I won't go into details here.
Neither Trump's landslide victory — or the Democratic victory — “has had an impact on the markets,” Anthony Saglimbenesaid Ameriprise Financial's chief market strategist in a briefing for reporters. “If we wake up on Nov. 6 and it looks like we have one-party control of Congress, I think volatility will increase.” But, he added, markets are likely to recover quickly. History tells us, Mr. Saglimbene said, that markets will refocus on interest rates and corporate profits “once we move past the election cycle.”