Former Vice President Joe Biden, the Democratic candidate for the presidency, would represent a high risk for investors in the stock markets, given the impact they could experience should he win the election.
Recent polls in which Biden leads raises alarm bells because if he gains the White House, the markets would be strongly altered, as analyzed by FOX Business anchor and political commentator Stuart Varney on July 20.
“This is something that anyone with a few dollars in the market has to think about,” Varney warned.
“What will happen to your 401k or IRA if Joe Biden wins? I have to believe that if a Biden victory seems likely, the sale will begin long before the election itself,” Varney said.
The danger for investors lies in Biden’s controversial promise that dramatic tax increases for businesses and individuals would be inevitable.
Biden even calculated that for companies the tax increase would be 30 percent and that capital gains taxes, as well as estate taxes, would not escape the increase either.
“Bundle it all up and you’ve got a complete reversal of the tax-cutting policies that produced the huge 8,000-point increase for the Dow since Donald Trump became president,” Varney said, measuring one of the areas in which Biden would negatively affect the country’s economy.
But that would be just the beginning, because if Biden were to appoint Sen. Elizabeth Warren (D-Mass.) as vice president, Varney predicts even worse effects since Warren has been called “the scourge of the banks” and “the scourge of Wall Street.”
“Would you own stock in a bank or any other financial company if she were just a heartbeat away from the Oval Office,” Varney asked bluntly, trying to make voters aware of the possible consequences on their economy of her Nov. 3 presidential Election Day decision.
Varney provides solid historical facts that serve as a benchmark for his market forecasts should the Biden/Warren formula have the best chance of making it to the White House.
He refers to the dramatic drop in the Dow indicator on the day that Democratic President Barack Obama took office in 2009.
“When President Obama took office on Jan. 20, 2009, the Dow Jones Industrial Average (DJIA) continued its credit crisis slump and fell to 7,949.09, the lowest inaugural performance (as measured by percentage drop) for the Dow since its creation in 1896.” reported the trade publication Investopedia.
The market disaster had begun on Sept. 29, 2008, when electoral favoritism was leaning toward Obama, with the loss of 777 points never seen before, which contributed greatly to the “stock market crash of 2008,” Varney recalled.
In return, Varney cites the successful stock market responses as the Republicans began to regain control in 2010 and then with the triumphant election of President Trump.
In the face of the strong tax increase Biden promises and the drastic approach of the Democrats to the left that threatens the disappearance of capitalism, it is not difficult to think about the collapse of the market.
For all these reasons and compared to the historical records obtained by the Trump administration, businessmen and investors would obviously favor four more years of the Trump administration mandate, surpassing the ‘intimidation’ of the polls forged by the media that have been against it since even before he was in the White House.