A new CNBC poll of over 100 investment professionals consisting of investment officers and portfolio managers found 2/3rds expect the first four years of Biden’s presidency to be worse for stocks than Trump’s term.
Per CNBC “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.”
The report adds “,any 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.”
The poll asked which new investments professionals would tap in to in 2021. 58% said special purpose acquisition companies, 33% said Bitcoin and 9% said options.
Bitcoin has emerged as a huge winner in 2020, breaking new ground over 20k and hitting near 28k at the time of publication.