Investing.com -- In a note published Thursday, Bank of America analysts have examined how the upcoming U.S. election might impact consumer stocks, focusing on potential shifts in fiscal, immigration, trade, and regulatory policies.
“Trump’s proposal to cut the corporate tax rate to 15% would likely result in greater investment in businesses and benefit retailers with high domestic exposure in the short term,” BofA analysts led by Sara Senatore explained in the note. “Sharply tighter immigration policies would likely have a disproportionate effect on the restaurant industry, with its relatively large immigrant labor force,” analysts noted.
Consumer staples like food companies could face heightened scrutiny over corporate price-gouging, particularly on grocery items, if Democrats retain control. On the other hand, a Republican win may favor a hands-off regulatory approach, facilitating mergers and acquisitions in certain industries.