How will the stock market perform with Joe Biden as president?
According to a new CNBC survey, most Wall Street investors believe a Biden administration will be worse for stocks than they were under President Donald Trump. But that does not mean they are anticipating a market meltdown.
The poll found that two-thirds think the Dow Jones Industrial Average will finish 2021 at 35,000, representing a 16 percent gain. Ten percent think the benchmark index will slide to 25,000 and 18 percent project it would hover at around 30,000.
The survey of more than 100 chief investment officers, portfolio managers and CNBC contributors who manage money argue that utilities, energy, and consumer staples will have a tough time under Biden, but industrials and financials would perform well under Biden.
So, what will they be dipping their toes in next year? More than half (58 percent) are interested in special purpose acquisition companies (SPAC)s, and one-third will invest in bitcoin. Just nine percent will tap the options market.
What’s the deal?
Well, as long as the Federal Reserve is pumping money into the economy and keeping interest rates at historical lows, there is no reason to suspect a market crash. Plus, Biden lucked out with Big Pharma announcing new coronavirus vaccines just days after the presidential election.
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