A Biden-Harris sweep is best for economy, says Fidelity International
A sweeping victory for Joe Biden and Kamala Harris in November’s US election plus Democratic majorities in both houses of Congress would be the best outcome for the US economy in the long run — though investors might take fright in the first few weeks.
That’s the take of Fidelity International, the sister company of Fidelity Investments, and its lead cross-asset strategist Wen-Wen Lindroth, published in a note on 13 August after Biden picked Harris as his running mate.
Meanwhile, Schroders, one of the UK’s biggest fund managers, said markets are not yet pricing in a Biden victory — but they should.
Lindroth said that if the Democrats take charge of both executive and legislature, the US government would be more likely to spend big to bail the economy out of its Covid-19 slump. She pointed out that Biden’s spending pledges already total $4.8tn.
While that prospect might rattle investors at first, Lindroth said, they would soon adjust.
“While markets may initially baulk at a Democratic sweep due to the party’s association with higher taxes and more regulation,” she wrote, “we think investors would eventually start to price-in the effects of a combination of greater fiscal largesse and monetary expansion, which should ultimately lead to higher consumer confidence and support for risk assets [an investor’s term for high-returning assets like stocks].”
Related news
Dependence on the American market can pose a serious competitive disadvantage in exports
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >US consumer sentiment worsened in September, according to a University of Michigan survey
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >The tariff war is also hitting German industry
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Related news
KSH: in September, consumer prices exceeded the values of the same month of the previous year by an average of 4.3 percent
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >The European Parliament has adopted a new, stricter definition of meat
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Honey Trial 2025 – Record prizes and a challenging year for domestic beekeepers
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >