A Victory for Former Vice President Joe Biden
A Biden victory could likely mean higher taxes and increased regulation of certain industries. It may also include increased federal spending on infrastructure and clean energy, and criminal justice reform.
Biden has promised to restore and augment the Affordable Care Act (ACA). He also promised to increase capital gains tax rates and create programs to make participation in the U.S. economy more diverse and inclusive. A Biden White House benefits hospitals and health care providers, and pressures drug companies and financial services companies that could be subject to more stringent regulation.
On the other hand, we have had almost four years to observe what a Trump presidency looks like. A second term for President Donald Trump could deliver more changes to immigration policies and a possible U.S. exit from NATO. The President is also likely to continue weakening the ACA, if not fully repeal it. He may also try to overhaul entitlement programs like Medicare, Medicaid and Social Security.
President Trump’s policies could benefit the financials sector by supporting a low-regulation environment. Defense-related companies could also see support through increased federal spending. While his changes to the corporate tax code have generally benefited businesses, the possibility of continued trade disputes and more isolationist policies could hamper free trade. This prospect continues to worry some investors.