However, experts are increasingly anticipating a “Blue Wave” with Democrats likely to take both the House and the Senate. This would allow Biden to raise corporate taxes and regulations on businesses with little congressional opposition.
Investors could be forgiven for thinking that they just can’t “win” in the upcoming US Presidential Election. The ideal president for markets is one who keeps taxes low but upholds free trade and maintains geopolitical stability. In the run-up to Nov 3, investors find themselves choosing between low taxes and geopolitical uncertainty with Trump, and high taxes and relative geopolitical stability with Biden.
Now, most investors are hoping for a Biden victory with a Republican Senate, reasoning that the upper house’s power of the purse would negate Biden’s redistributive impulses as he introduces more certainty into the chaotic international order.
